How Trump's tariffs are complicating Nitendo Switch 2's release
What's the story
Nintendo America's President Doug Bowser has spoken about the impact of ongoing trade tensions on the launch of their latest console, the Switch 2. The console is set to hit shelves on June 5. However, some US retailers have begun canceling pre-orders for it this week. Despite a high price tag of $449 (original Switch was launched at $299), demand for the new tech has been high at GameStop, Walmart and Target.
Tariff impact
Bowser addresses tariff concerns and pricing strategy
Bowser addressed the ongoing tariff situation, saying that the prices for Switch 2 were determined based on previous tariffs. "What I can share is the $449 for the individual SKU and then the $499 for the hardware SKU plus Mario Kart World," he said. However, he also noted that they are actively assessing potential impacts of tariffs on their pricing strategy.
Demand management
Nintendo's strategy to meet demand and prevent scalping
Bowser emphasized Nintendo's commitment to meeting consumer demand for the Switch 2. He said, "We think we have a device in Nintendo Switch 2, and a host of games both from Nintendo and from our publishing partners that consumers are really going to want." To combat scalping and bots, Bowser said they are working closely with retail partners who have programs in place to prevent such activities.
Launch rationale
Bowser explains launch timing and content strategy
Bowser explained that the decision to launch in June was influenced by the Switch 2's suitability for summer travel, given its versatility as both a home console and portable device. He said, "We like to think that the year is a year and that there are no specific time frames when you should or must launch video games." The Switch 2's versatility as both a home console and portable device also contributed to this timing.
Growth plans
Bowser on expanding content and manufacturing strategy
Bowser said Nintendo's goal is to cater to a broad range of players with appealing content. He also hinted at plans to expand their catalog by bringing in more developers, especially those making mouse-controlled games. On the manufacturing front, Bowser said they have a long-term plan with suppliers and a filled pipeline of materials to meet high demand for Switch 2.