Gamers in the U.S. are waiting to find out when they can pre-order a Nintendo Switch 2, and answers aren't coming yet.
Trump's tariffs have left Nintendo to evaluate the situation to ensure it can release the console in the U.S at the promised $449 price.
However, things have changed now that Trump has paused the tariffs for 90 days on all countries except China, where he increased the tariffs to 125%.
Does the delay mean Nintendo can get more units to North America? Will the company launch pre-orders sooner rather than later to lock in sales in the U.S.?
Here's how the evolving tariff situation could impact the launch of the Switch 2.
What has changed with the tariffs?
Initially, the list of countries getting hit with high tariffs was massive. Now, President Trump has decided to pause the high tariffs to most countries for 90 days, leaving them with a much more manageable 10% tax.
At the same time, Trump increased the tariffs for China to 125%, resulting in goods shipped from the country costing even more.
With some countries paying lower fees and China paying more, it creates an interesting dynamic for Nintendo.
What the tariff delay could mean for Switch 2 pre-orders
You might think President Trump raising the tariffs on China would hurt Nintendo's ability to get Switch 2 units to the U.S.
If Nintendo is making the Switch in Vietnam, it will certainly try to stuff the channel to get ahead of tariffs reinstatement.
Avi Greengart, Techsponential
However, Bloomberg reports that Nintendo assembles roughly a third of Switch 2 units in Vietnam, now only facing a 10% tariff, not the 46% it would have had if the pause had not happened.
If so, Nintendo can focus on shipping units from Vietnam to the U.S. for 90 days. If the company can build a significant stockpile in the U.S. with lower tariffs, it could get enough to meet consumers' demand.
In a statement to Tom's Guide, Techsponential analyst Avi Greengart said, "If Nintendo is making the Switch in Vietnam, it will certainly try to stuff the channel to get ahead of tariffs reinstatement, but given the demand for the Switch 2, shipping as many as possible was always going to be the plan."
For a company with the resources of Nintendo, having 90 days to focus a third of its production on getting units to the U.S. should give the company some wiggle room, but it'll need to use the time wisely.
Fortunately for Nintendo, ramped-up shipping has already started. According to customs data from NBD, one of the three leading Switch 2 assemblers shipped more consoles in February than in the previous six months combined.
Unfortunately, there's still no word from Nintendo about a revised pre-order date for the Switch 2, which was scheduled to start on April 9 and for now is delayed indefinitely.
"We believe Switch will still be delayed until Nintendo has a better understanding of the China component and Vietnam," said Daniel Ives, Wedbush Securities managing director and global head of technology research.
Of course, Nintendo can't forget about other regions that'll want to order Switch 2 units. Still, with two-thirds of production focused on those regions, the company should have no problem meeting demand, assuming it made enough consoles.
Will Nintendo increase the Switch 2 price?
If Nintendo can get enough units to the U.S. in 90 days — a feat it seems on track to do — the other question is whether the company will keep the $449 price.
Even with 10% tariffs, that's still a significant bump in cost, which could hit Nintendo's profit margins.
We believe Switch will still be delayed until Nintendo has a better understanding of the China component and Vietnam.
Daniel Ives, Wedbush Securities
Hideki Yasuda of Toyo Securities told Bloomberg, “We believe the Switch 2’s bill of materials is around $400, meaning Nintendo would still be selling consoles at a loss in the US with the 10% tariff — but the loss would be something Nintendo would be able to absorb."
That could mean that early adopters will get their Switch for $449, but it remains to be seen whether Nintendo will be able to maintain that price for the long haul.
In a statement to Bloomberg, Bernstein analyst Robin Zhu said, “If the tariffs stay at 10%, Nintendo probably keeps pricing at $450 and just takes the hit on margin. At 46% Vietnam tariffs, I expected them to raise by $50 to $100.”
And if the tariffs return to 46%, the price will almost certainly increase.
More from Tom's Guide
You must confirm your public display name before commenting
Please logout and then login again, you will then be prompted to enter your display name.
