Nintendo President fears Switch 2 price hike amid tariff wars, as "people will have less money to spend on game consoles"

Nintendo President Shuntaro Furukawa expressed concerns that the company may need to increase the price of the upcoming Switch 2 console in the United States due to recently implemented tariffs on Chinese imports. The revelation came during Nintendo's May 8 earnings call, just weeks before the console's scheduled June 5 launch."If the assumptions regarding tariffs change significantly, we would like to consider what price adjustments we should make and implement them after considering various aspects," Furukawa stated, addressing the potential impact on the already premium-priced $449.99 console. Nintendo's forecast assumes tariffs of 10% on products from Japan, Vietnam, and Cambodia, while Chinese imports face a staggering 145% tariff (as of now, US and China are renegotiating the trade terms, which possibly could lower the tariff). The company expects these trade measures to impact profits by "tens of billions of yen."Furukawa highlighted broader economic concerns beyond direct manufacturing costs. "If prices of daily necessities like food increase (because of the tariffs), then people will have less money to spend on game consoles. If we were to adjust the price of the Switch 2, this could decrease demand."While Nintendo primarily manufactures Switch hardware for North America in Vietnam, certain accessories and amiibo figures come from China, subjecting them to higher tariff rates.Despite these challenges, Nintendo forecasts selling 15 million Switch 2 units in its first year – matching the original Switch's debut performance – though analysts describe this projection as "conservative" given the tariff uncertainties.The company faces a delicate balancing act between covering increased costs and maintaining consumer interest. "Nintendo will carefully consider various factors when changing any pricing, including its acceptability to customers," Furukawa emphasized.The Switch 2 isn't alone in facing potential price hikes. Microsoft has already increased Xbox Series S prices by $80 and Series X by $100, while some smaller gaming hardware companies have suspended U.S. shipments entirely due to prohibitive tariff costs.Pre-orders for the Switch 2 opened on April 24 following a brief delay related to tariff concerns, with Nintendo warning that release-day delivery cannot be guaranteed due to overwhelming d