Trump's tariffs throw a wrench into Nintendo's big month

• Nintendo announced pricing for the Switch 2 the same day as Trump's sweeping reciprocal tariffs.
• Since then, the company has delayed US preorders, citing the potential ramifications of the new tariffs.
• Nintendo of America's president said the $450 price did not factor in the new tariffs, which he called a "challenge."

After a nearly decadelong wait, Nintendo finally unveiled details and pricing of its hotly anticipated Switch 2 on April 2. Later that same day, Trump threw a monkey wrench into its plans.

In a month that was supposed to be triumphant for Nintendo, Trump's imposing of reciprocal tariffs on countries from which the company sources its components has created a mess.

Now, the looming question is whether Nintendo will decide to risk souring its Nintendo Switch launch by announcing a new, higher price.

Nintendo of America President Doug Bowser told Wired that the company was "actively assessing" how tariffs could affect its strategy.

"It creates a challenge," Bowser said in an interview published Monday. "It's something we're going to have to address."

There are already signs Nintendo could be considering a price hike — the company announced last week that it would push back the US preorder date for the Switch 2, citing Trump's sweeping tariffs.

As is, the Switch 2 was already positioned to be pricier than its predecessor, with Nintendo announcing a base price of $450 compared to the original's $299 price tag.

And while industry watchers suggested that Switch 2's $450 price tag may have already factored in Trump's anticipated reciprocal tariffs, Nintendo of America president Doug Bowser said that's not the case.

"We didn't consider tariffs into that equation," he said in a separate interview with CNBC. "We felt that was going to be the right price point for our consumers, and the right value proposition, if you will, for the device we were creating."

Bowser said the price increase over the original Nintendo Switch boiled down to a combination of factors.

"First of all, the hardware unit itself, which has a lot of improved features, from some of the things I talked about earlier with Joycon 2, also the LCD screen that is much larger, and much deeper and richer," he said.

Bowser added that he expects the increased CPU and GPU processing power in the Nintendo Switch 2 to allow for "much deeper game development," as well as an "ability to bring even more developers onto the platform."

It's not just the game console that is getting more expensive — a digital copy of the Switch 2 game exclusive "Mario Kart World" will run you an eye-popping $79.99, and $89.99 for the physical version.

As for the cost of Switch 2 games, Bowser said there's no baseline people should expect.

"I would say that we're not looking to establish a benchmark for pricing," he said. "We look at every game and every experience and determine what we believe is the right price point based on that experience."

Nintendo could see a major hit to its supply chain — the company previously moved much, but not all, of its production away from China, which now faces a 34% reciprocal tariff. The countries it's shifted toward — Vietnam and Cambodia — have been hit by 46% and 49% tariffs.

Nintendo didn't immediately respond to questions about whether it would further increase the price of the Switch 2, but the previously told BI it's continuing to weigh what tariffs could end up costing it.

"Pre-orders for Nintendo Switch 2 in the U.S. will not start April 9, 2025 in order to assess the potential impact of tariffs and evolving market conditions," Nintendo said in an April 4 statement confirming the US preorders delay. "Nintendo will update timing at a later date. The launch date of June 5, 2025 is unchanged."

The company now faces a choice: Risk angering customers further but preserving its margins by announcing a new higher price tag — or eat any added costs that its suppliers aren't willing to absorb.

With the June 5 launch rapidly approaching, gamers won't have to wait long to see which road Nintendo chooses.