Randall365
Member
The tariff of 46% on Vietnam is surprisingly high. China too at 34%. Caught them out I reckon.
Does Nintendo pay these on rrp (or cost price) when the units enter the US or does the retailer pay?
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Nintendo Switch 2 Preorders Delayed (US) Due To Tariffs, Release Date Still June 5
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The tariff of 46% on Vietnam is surprisingly high. China too at 34%. Caught them out I reckon.
Does Nintendo pay these on rrp (or cost price) when the units enter the US or does the retailer pay?
Heimdall_Xtreme
Hermen Hulst Fanclub's #1 Member
This is hilarious but im ready for the pre-order with at least 3 games
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Represent.
Represent(ative) of bad opinions
jm89
Member
While it will effect everyone. Nintendo wants profit day one from hardware others might be willing to take a hit on margins to prevent price rises.
hahaha! good one
SkylineRKR
Member
They know full well they also need to sell. I get indications that its not hard to find available pre orders in EU right now. PS5 Pro never sold out either. Its risky if Nintendo would push it further. There is only so much consumers are willing to spend.
Let's pretend this is Nintendo's call and not due to tariffs of 30-55% imposed by US administration to countries of origin of Switch 2.
How could they know what tariffs were gonna be before they were announced? They probably baked in a smaller, more reasonable amount such as 10%. Very few people saw those stupid, demented rates coming, 50% on Vietnam or whatever that is (and indeed the stock markets, supposedly forward looking, are in free fall after the announcement). I wouldn't hire you as my accountant.
If they sell at the current price they will lose money on every unit. Expect the final price to be around 600 bucks.
They were incompetent not delaying the Direct, that's for sure.
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Zacfoldor
Member
Agreed, this just probably gives Nintendo time to either move the product so it is imported from the least tariffed place or perhaps to hopefully wait out some of the higher early tariffs.
I doubt anything will change and I'm sure everything will be 100% fine.
We are in the trees right now with these tariffs but I think the view is different when looking at the forest. Given time things will equalize and perhaps we can make some deals and get rid of all tariffs and have free trade.
saintjules
Member
Sakura
Member
Tariffs are based on where the product is made, not where it is imported from, so they can't just move it somewhere else (say a 10% country) and import from there.
They could ship the parts somewhere cheaper and just do the final assembly there though I think, but obviously that's not something you can do by June.
Kings Field
Banned
I don't think there was going to be a problem preordering day 1 with the current price. I've been keeping tabs on the AU Evgames site and I believe it took over 24 hours to sell out of the non-bundle Switch 2 and the bundle is still available on their site.
Now if they increase the price in the US, I think this will be readily available to purchase even without a preorder. People don't know how bad it is for people in this country financially. The amount of people I come in contact with on a daily basis as a PA who are having financial issues and are upfront about it are staggering. When you aren't working in a cubicle and actually interact with people on a day to day basis you understand how horrible it really is for middle class families.
I'll still buy one because I have disposable income but for people on a budget, it was already pushing it with the price, if it goes up anymore I think Nintendo are in trouble at least in the US market.
Now if they increase the price in the US, I think this will be readily available to purchase even without a preorder. People don't know how bad it is for people in this country financially. The amount of people I come in contact with on a daily basis as a PA who are having financial issues and are upfront about it are staggering. When you aren't working in a cubicle and actually interact with people on a day to day basis you understand how horrible it really is for middle class families.
I'll still buy one because I have disposable income but for people on a budget, it was already pushing it with the price, if it goes up anymore I think Nintendo are in trouble at least in the US market.
Fabieter
Member
I think they will for consoles at least. You want a big base and tariffs don't help for that.
There never was a black swan event like this so.
coachmcguirk91
Gold Member
blacktout
Member
They're probably hoping the Trump administration will blink after the huge hit the market took on Wednesday.
Many corporations are in the same boat right now, trying to assess risk and costs and the likelihood that the tariffs will be reduced or repealed.
Nintendo is in a particularly perilous position here, obviously, since they were already weathering a pricing backlash, so they're going to want to wait as long as possible before making any adjustments.
Many corporations are in the same boat right now, trying to assess risk and costs and the likelihood that the tariffs will be reduced or repealed.
Nintendo is in a particularly perilous position here, obviously, since they were already weathering a pricing backlash, so they're going to want to wait as long as possible before making any adjustments.
This is just for the SOC. This is why Nintendo and others don't assemble these puppies in Taiwan. Non labour production costs in US for assembly would cost way more than 10%.Most of the cost is tooling, not labor. Even TSMC, said the Arizona plant will have 10% running cost over Taiwan production.
Producing wafers at TSMC Arizona is only 10% more expensive than in Taiwan: TechInsights
It is equipment, not labor that defines chipmaking costs.www.tomshardware.com
Every competitor's device will increase by the same amount, so if Americans still want to play games they will fork out the tariff (and maybe write to their Congress reps and senators to stop them since they are illegal). This doesn't make the Switch 2 less competitive against the alternatives.Imagine paying $630 usd for a switch 2 with mobile graphics.... Couldn't be me
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Fabieter
Member
Do people srsly think everyone will do everything in the USA? You know all the parts of the console also has to be made in the USA or else it would be pointless.
Spukc
always chasing the next thrill
They can't be selling it for 830 right?
Randall365
Member
America is a very wealthy country though - your average salary is way higher than european countries (for example) and your tax burden is less. I think people would wince a little but pay $600 if their kids are screaming for it. Short term pain. Iphones are $800 and they go like hotcakes.
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VGEsoterica
Member
Almost like I knew it was going to happen haha. Thanks years dealing with imports from other countries from work and knowing all about tariffs and import duties...so let me explain!
My guess is you see a $500 or $550 Switch 2 soon!
My guess is you see a $500 or $550 Switch 2 soon!
The Ps4 was like $1,500 in Brazil because of tariffs, and that's a much poorer country than the USThey can't be selling it for 830 right?
Id feel differently if the price wasnt so close to the PsV and the tech wasnt a gen behind. I truly believe the price was already pushing alot of a core demo before this.. It wouldnt fail but we might be looking at something closer to a gamecube.
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PurePlatinum
Member
How are tariffs benefiting me as an American again?
FIREKNIGHT2029
Member
So people who said the prices were high because the tariffs were pre-baked in were wrong?
Canada seems like a decent reasonable country. Unfortunately Japan is scared of the foreign bully and as such is probably charging the rest of the world the same inflated price to deflect from the trade war they are stuck in.
It shouldn't but Americans may pay Canadian prices for it with the tarriffs being added.
Randall365
Member
In a stable economy, but it happens elsewhere.
cash_longfellow
Member
Good luck to everyone willing to pay the $600 it's about to be.
That Damn Kid
Member
Fabieter
Member
Margins in most industries aint that high that most of the companies can afford to eat the tariffs.
Nah it will be fine. All companies knows how to negotiate for incentives and tax cuts especially if they build plants in USA. I'm confident everything will be fine especially in gaming industry. Its all about negotiations. Growing pains in a short while, but in the long run it will be beneficial too USA to create jobs especially on states that has a very high unemployment rate, which is one of the top reason for the election result in USA, along with frustration against twisted dei and woke agenda like for example forcing and imposing twisted gender ideology.
And its just being fair since other countries are already charging very big tariffs against USA before Pres Trump presidency. Price will stabilize again once everything becomes fair in tariffs and more factories are build in USA.
For me, just manage your budget properly, take care of you job and work hard.
And its just being fair since other countries are already charging very big tariffs against USA before Pres Trump presidency. Price will stabilize again once everything becomes fair in tariffs and more factories are build in USA.
For me, just manage your budget properly, take care of you job and work hard.
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Well. They went up for a preorder here in Oz right after the announcement. Haven't sold out yet.
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