Eight years after revolutionizing the console market with the Nintendo Switch, the Japanese gaming giant is preparing to launch its much-anticipated successor—the Switch 2—on June 5. While the original device became a beacon of entertainment during the pandemic and sold over 150 million units worldwide, its successor faces a dramatically different world: one gripped by a growing trade war and volatile supply chains.

The new console, priced at $449.99, is poised to become one of the year’s most significant tech launches. But the timing is complicated. On the same day Nintendo confirmed the release date and pricing, U.S. President Donald Trump announced sweeping new import tariffs—putting a harsh spotlight on an industry that had largely escaped the front lines of trade disputes.

Tariffs Threaten the Supply Chain

While global attention has focused on how tariffs affect automobiles and semiconductors, video game hardware is not immune. For Nintendo, these new trade barriers could significantly disrupt a product launch that is vital to the company’s future profitability. The company briefly paused U.S. pre-orders to assess the impact of the tariffs before resuming them for an April 24 start, assuring customers that the $449.99 price would remain unchanged—for now.

However, behind the scenes, Nintendo is facing immense cost pressures. “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 Kantan Games consultancy. To offset potential losses, Nintendo has already increased prices for some accessories, while cautioning that further “adjustments are also possible in the future depending on market conditions.”

Diversifying Production, but Challenges Remain

Historically, Nintendo has relied heavily on Chinese manufacturing, but it has diversified production in recent years to include Vietnam and Cambodia—moves that are now proving prescient. Yet, even these nations are under scrutiny, with potential reciprocal tariffs of 46% and 49%, respectively. Although those levies are paused for 90 days, the uncertainty remains high.

“Nintendo plans to supply the U.S. from Vietnam and Cambodia production, under normal demand assumptions,” said Robin Zhu, an analyst at Bernstein. Despite the planning, absorbing tariff-related costs could become necessary if trade tensions escalate further.

The U.S. remains a crucial market for Nintendo, accounting for 44% of its global sales in the financial year that ended in March. With strong competition from mobile gaming and cloud-based platforms, the stakes are high.

Consumer Demand Remains Strong—For Now

Despite the economic headwinds, analysts remain optimistic about consumer demand. Ampere Analysis forecasts 13.2 million global sales for the Switch 2 in 2025, including 4.6 million in the U.S. “I don't think momentum will be impacted in North America,” said Piers Harding-Rolls, an analyst at the firm.

Still, there's concern that price-sensitive casual gamers—who were key to the original Switch’s success—might balk at the increased cost. The $449.99 price tag represents a 50% jump from the original Switch, and upcoming software like Mario Kart World is listed at $79.99, further pushing up the cost of entry.

Hardcore fans are expected to line up regardless, but the higher price could dampen the device’s broader appeal. “The accessory price hikes can only soften the blow to some extent,” said Toto.

Competing in a Changing Market

The gaming market has shifted dramatically since 2017. With tech giants entering the space and mobile gaming capturing a broader audience, the relevance of dedicated gaming consoles has been questioned. Yet, both Nintendo and Sony have maintained their stronghold in the console market.

Sony itself recently raised the price of the PlayStation 5 in Europe and the UK, with analysts predicting similar moves in the U.S. This indicates that Nintendo may not be alone in facing pricing challenges.

Despite all this, expectations for the Switch 2 are high. Boasting a larger screen, enhanced graphics, and continuity with the popular hybrid console experience, it is likely to attract both returning and new fans. “There’s a lot of pent-up demand for a more powerful Switch experience,” Harding-Rolls added.

Conclusion

The launch of the Switch 2 is shaping up to be more than just a new chapter in Nintendo’s storied history—it’s a test of resilience in an increasingly complex global economy. With trade wars looming and consumer expectations soaring, Nintendo must balance innovation, affordability, and strategic supply chain management to ensure the success of its next-generation console.