Analysts on Nintendo Switch 2 Pre-orders: 'Unhinged Times' Due to Tariffs

It's been a rollercoaster week for U.S. gamers, starting with the exciting full reveal of the Nintendo Switch 2, quickly followed by disappointment over its $450 price tag and the $80 cost for Mario Kart Tour. The excitement took another turn when Nintendo announced a delay in pre-orders to assess the impact of the Trump Administration’s sweeping new tariffs on global trade.

We've previously discussed the reasons behind the high cost of the Nintendo Switch 2 and the potential impact of these tariffs on the gaming industry as a whole. Now, the burning question on everyone's mind is: what will Nintendo do next? Will the price of the Nintendo Switch 2 rise even further when pre-orders finally open?

Typically, when it comes to predicting the future of video games, I consult a panel of expert industry analysts. While they can't predict the future with certainty, they usually offer a well-informed consensus based on data and evidence. I've already done this twice this week. However, this time, every analyst I spoke to was stumped by the current chaos. Some speculated that Nintendo would raise prices, while others thought they might not. Yet, all emphasized the unprecedented nature of the situation, making any prediction highly uncertain.

With that in mind, here's what the analysts had to say:

Sky-High Switch

Analysts were split on whether Nintendo would increase prices. Dr. Serkan Toto, CEO of Kantan Games, initially thought it was too late for a price hike after the initial announcement. However, the delay changed his perspective. He believes Nintendo will likely need to raise prices for the system, games, and accessories due to the high tariffs. "Would you be surprised to see the Switch 2 hit $500 for the base model? I wouldn't," he remarked, questioning why Nintendo didn't wait to set prices until after the tariff situation was clearer.

Mat Piscatella, senior analyst at Circana, also predicted a general increase in game prices, including those from Nintendo, though he noted the unpredictability of the situation. He mentioned that the tariffs were much higher than anticipated, forcing businesses to reevaluate their pricing strategies. "The US could certainly be joining the group of regions with higher game prices because of these tariffs," he stated.

Manu Rosier, director of market analysis at Newzoo, anticipates a rise in hardware prices but believes software might be less affected due to the growing dominance of digital distribution. "If a substantial tariff increase were introduced, it’s unlikely that companies like Nintendo would absorb the additional cost by cutting into their margins," he said.

Holding the Line

On the other hand, Joost van Dreunen, NYU Stern professor and author of SuperJoost Playlist, believes Nintendo will try hard to avoid a price increase. He suggests that the $449.99 price already accounts for potential tariff volatility. "Nintendo has aimed for a launch price around the $400 mark, adjusted for inflation," he noted, indicating that the company might absorb or offset additional costs to maintain the announced price.

Piers Harding-Rolls, games researcher at Ampere Analysis, agrees that Nintendo faces a tough decision. "The company is now in between a rock and a hard place, having already announced the launch price," he said. He believes Nintendo will try to maintain the price until at least 2026 but acknowledges that the situation is fluid. A price change could impact the brand and consumer perception, especially during the crucial first holiday season.

Living in Unhinged Times

Rhys Elliott, games analyst at Alinea Analytics, predicts higher prices for both Nintendo hardware and software due to the tariffs. He referenced his earlier comments about Nintendo's strategy of offering cheaper digital editions in certain markets to encourage digital purchases. "Nintendo might have wanted to do something similar in the US, but the tariff situation is so chaotic," he explained.

Elliott also painted a grim picture of the broader impact of the tariffs on the games industry, aligning with warnings from the Entertainment Software Association. He noted that some manufacturers, including Nintendo, are shifting production to non-tariff-impacted markets. However, he emphasized the logistical impossibility of moving entire supply chains to the U.S. under current conditions. "We are living in...there’s no other word for it...unhinged times driven by an unhinged man (and other forces)," he said, criticizing the tariffs for their negative impact on consumers and the economy.

Nintendo Switch 2 System and Accessories Gallery

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In summary, the unpredictability caused by the new tariffs has left analysts divided and uncertain about Nintendo's next move. Whether Nintendo decides to raise prices or hold the line, the situation remains fluid, and the impact on gamers and the industry at large continues to unfold.