Tariffs may push Switch 2, PS5 prices to $590 in US

Nintendo and Sony may raise US prices for their game consoles due to newly imposed tariffs, according to Bloomberg Intelligence.

The tariffs could cause price hikes of up to 30%, pushing the cost of the upcoming Switch 2 and PS5 Astro Bot bundle to around US$590.

A 125% duty now applies to Chinese imports, where both consoles are mainly assembled.

While Nintendo has increased production in Vietnam, a 10% levy still applies to overseas imports, despite a 90-day reprieve from higher tariffs.

Nintendo shares fell 5.4%, and Sony’s dropped 9.4% in Tokyo after the announcement.

The US is a key market, making up 37% of Nintendo’s sales and 29% of Sony’s revenue.

The 90-day reprieve gives Nintendo time to build inventory before the Switch 2’s June 5 launch, but US pre-orders are delayed as the company evaluates the impact.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Console makers face complex geography of manufacturing amid tariff uncertainty

The gaming industry’s heavy reliance on Chinese manufacturing creates inherent vulnerability to tariffs, with research showing over 96% of video game consoles imported to the US in 2018 came from China1.

Nintendo’s strategic shift to produce consoles in Vietnam demonstrates how companies have been attempting to navigate trade tensions, but the latest tariffs on multiple countries have complicated this diversification strategy2.

This geographic concentration reflects decades of specialized manufacturing ecosystems that can’t be quickly replicated elsewhere, explaining why console makers remain vulnerable despite years of trade uncertainty.

The hardware-heavy business model contrasts with digital-only game publishers, who remain largely insulated from physical supply chain disruptions and tariff impacts.

2️⃣ History shows console makers struggle to absorb tariff costs

When faced with tariffs, console manufacturers historically pass costs to consumers due to the industry’s notoriously thin hardware margins, as documented in a 2019 joint letter from Nintendo, Sony, and Microsoft opposing a proposed 25% tariff1.