Nintendo's Bowser denies tariffs impacted Switch 2 pricing

In early April 2025, Nintendo announced the price of its highly anticipated Switch 2 console would be set at $450 in the United States, a considerable increase from the original Switch's $300 launch price. This price hike drew significant backlash from gamers, with many attributing the cause to Donald Trump's tariffs on imported goods, particularly since the majority of gaming consoles are manufactured in countries like China and Vietnam, both of which faced high tariffs imposed by the Trump administration. Market analysts initially speculated that the pricing of the new console might be influenced by the tariffs, with some even labeling the $50 increase as a 'Trump tax.' Joost van Dreunen, an industry expert, highlighted how heightened tariffs could impact the pricing of video game consoles. However, Doug Bowser, President of Nintendo of America, clarified that the price of the Switch 2 had already been determined before the tariffs were enacted, indicating that the increase was primarily due to the console's improved features and technology. The new Switch 2 includes significant hardware upgrades, such as a larger LCD screen with variable refresh rate capabilities, a custom-built CPU/GPU from Nvidia, and greater internal storage. Nvidia has also reported that the Switch 2 will deliver up to ten times the graphics performance of its predecessor, supporting high-end features like DLSS and ray tracing. Despite these advancements, many gamers questioned whether these improvements justified the steep price increase, especially in light of anticipated higher prices for Switch 2 games, which are expected to range between $70 and $80. Additionally, Nintendo intends to charge $10 for a 'Welcome Tour' that will teach users how to operate the new device. Amidst this controversy, Nintendo paused preorders for the Switch 2 in the U.S. and Canada to evaluate the potential impact of tariffs and shifts in market conditions. While the launch date was confirmed for June 5, 2025, there was growing speculation whether the retail price might increase further in the future. Analyst David Cole from DFC Intelligence stated that although he expected the console to launch at the initial $450 price point, the overall cost might increase by up to 20% in the next two years due to economic pressures and production costs. As of now, Nintendo is continuing to sell the original Switch models alongside the Switch 2, potentially creating a complex pricing scenario as consumers weigh their options between the existing console and the new, more advanced model. Overall, the situation surrounding the Switch 2 pricing reflects broader economic challenges influenced by international trade policies and asks important questions about the future of gaming console costs in light of ongoing tariffs and market conditions.