Nintendo, the merry video game maker of Mario fame has issued a press release. It will still delay opening pre-orders for its upcoming new console, the Switch 2, in the United States as previously announced. This decision was made in response to a drastic 24% tariff placed on Japan’s exports. The tariff has taken a dramatic toll on the company’s ability to compete in the US market.
The Switch 2, announced on Wednesday, is set to release on June 5 and start at $449.99. However, the unexpected tariff creates a dilemma for Nintendo: it must either absorb the additional cost or pass it on to consumers. The company’s latest earnings call reiterated that this tariff issue is unique to the US market. Pre-orders in the UK are still going through, however.
In its latest statement, Nintendo joined the conversation by showcasing its fears over the tariff’s negative impact on their business operations.
“Pre-orders for Nintendo Switch 2 in the US will not start April 9 in order to assess the potential impact of tariffs and evolving market conditions.” – Nintendo
The price of gaming continues to be in the spotlight as well, with a standard physical copy of Mario Kart World priced at $79.99. Now mainly from a consumer standpoint, buyers of this title can take advantage of getting it for much cheaper if purchased with the Switch 2 console.
This abrupt decision to halt pre-orders is a significant shift for Nintendo, which had aimed to launch the Switch 2 with a strong presence in the US market. The company had recently promised to begin taking pre-orders in just a few days. The tariffs required them to scramble to update their plans on short notice.
Japanese Prime Minister Shigeru Ishiba has recognized how grave the situation is, saying,
“The government will do its utmost to respond to this crisis, involving the entire country.” – Shigeru Ishiba
As Nintendo navigates this challenging landscape, the company remains committed to launching the Switch 2 on schedule despite the hurdles. The console’s future – both in the US and abroad – remains dim. Now, those companies are doubling back to rethink their approaches as the market shifts.