Nintendo faces trade war test with Switch 2 launch

Sam Nussey - Reuters - 21/04
Nintendo's Switch became a source of much-needed escapism during pandemic restrictions. Now, the Japanese video game company faces the harsh reality of a brutal trade war as it launches its successor device.
  • Switch 2 vital to Nintendo's future profitability
  • Nintendo retaining $499.99 Switch 2 price tag
  • Lots of demand for more powerful Switch experience, analyst says
TOKYO, April 21 (Reuters) - Nintendo's (7974.T), opens new tab Switch became a source of much-needed escapism during pandemic restrictions. Now, the Japanese video game company faces the harsh reality of a brutal trade war as it launches its successor device.
The Switch 2 is set to debut on June 5. That is eight years after the original Switch, which has sold 150 million units and disproved naysayers who predicted the decline of the console.

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While the trade war has put the focus on industries such as cars and chips, the maker of "Super Mario" and "Donkey Kong" games must also grapple with tariffs disrupting its business.
For Nintendo, trade barriers complicate one of the hottest product launches this year as the success of the Switch 2 is vital for the future profitability of the company.
The Switch 2 launch will test Nintendo's ability to manage its supply chain, as it works to secure sufficient supply for the United States while maintaining the $449.99 price tag.
"If the tariffs are really going to hit them, they probably still need to raise the price for the Switch 2," said Serkan Toto, founder of the Kantan Games consultancy.
Nintendo announced the device's price and launch date on April 2, the same day U.S. President Donald Trump unveiled sweeping import tariffs, after an initial reveal in January.
The company then paused the start of U.S. pre-orders as it examines the impact of tariffs before announcing it would maintain Switch 2 pricing with pre-orders beginning on April 24.
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