It was going to be the revivifying event the video games industry desperately needed - instead, thanks to Donald Trump's tariffs, the launch of the Nintendo Switch 2 is experiencing a troubled birth.
Nintendo (NTDOY) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Nintendo's strong IPs and upcoming Switch 2 release position it as a long-term winner despite trade war threats, recent revenue declines, and industry headwinds. The Switch 2, set for 2025, is expected to boost sales and attract strong third-party support, enhancing Nintendo's financial prospects. Nintendo's solid financial health with sustainable and substantial cash reserves would allow it to weather economic downturns and trade tensions.
Nintendo of America president Doug Bowser said that the company did not factor in possible tariffs from the U.S. when deciding on the pricing for its Nintendo Switch 2 console, according to Wired.
Nintendo said it is delaying the start of pre-orders for the Switch 2 gaming device in the United States as it examines the potential impact of tariffs.
The new tariffs, which include a 24% levy on products imported from Japan, are prompting major Japanese companies to reevaluate their US strategies.
The new video game console will still be released in June, the Japanese company said. Its price was unveiled as $450 this week.
Nintendo said on Friday that pre-orders for the company's hotly anticipated Switch 2 console would be delayed while the company considers the impact of tariffs. "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," a Nintendo representative told CNBC.
Nintendo will delay US preorders of the Switch 2 due to the potential impacts of recent tariffs. The company said US-based customers won't be able to order it from April 9 as previously planned.
Nintendo is delaying preorders for the newly-announced Switch 2 in the U.S. due to concerns around President Donald Trump's tariffs. Preorders will no longer begin on April 9.
Nintendo is delaying preorders for the newly-announced Switch 2 in the U.S. due to concerns around President Donald Trump's tariffs. Preorders will no longer begin on April 9.
This is going to be a big launch lineup for the Nintendo Switch 2.