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Nintendo is preparing to release Switch 2 amid the US-China trade war - FT

Kyiv • UNN

 • 176279 views

Nintendo plans to release Switch 2 on April 2, when Trump will announce new tariffs. The company is moving production to Southeast Asia to avoid US duties.

Nintendo is preparing to release Switch 2 amid the US-China trade war - FT

Nintendo has announced the release of its new Switch 2 game console, which is expected to appear on the market amid global trade tensions. This is reported by the Financial Times, writes UNN.

Details 

The new console, which may have a larger display and a line of next-generation games, will be unveiled on April 2, the day Donald Trump is scheduled to announce new trade tariffs. This aspect may affect the starting price of the Switch 2 in the US, which is currently being discussed among analysts.

The original Switch revolutionized gaming when it was released in March 2017 as the world's first hybrid portable and home console. It raised Nintendo's stock price to a new level, amid sales of over 150 million devices by the end of 2024.

Now the company hopes to turn this huge loyal fan base into buyers of the more powerful Switch 2 console with a large display and a must-have line of next-generation games.

However, in addition to technical innovations, the company's strategy is based on an important transfer of production from China to Southeast Asia, in particular to Vietnam and Cambodia, which allows it to bypass American tariffs imposed by the Trump administration. 

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Ramping up new assembly capacity in Southeast Asia could be critical to their efforts to ensure sufficient supply in the 2025 holiday season and, therefore, to the success of the Switch 2 this year.

- said Bernstein analyst Robin Zhu.

According to informed sources and analysts who processed the data, hundreds of thousands of Switch 2 devices have been shipped from Vietnam to the company's facilities in the United States since the beginning of the year.

David Gibson, an analyst at MST Financial, said: "Export data combined with finished goods codes confirms that Nintendo shipped a finished version of the Switch 2 [from Vietnam] for five days in January, totaling 383,000 units, all of which were shipped to the US."

I suspect this was done to test the distribution system and get ahead of the risk of tariffs. I expect the numbers to increase significantly in February and March.

- added the analyst.

Nintendo is not alone in stockpiling in the US ahead of the introduction of new duties, PlayStation maker Sony is also stockpiling. But the Kyoto-based company is considered one of the most vulnerable to Trump's policies due to the upcoming launch of the Switch 2.

Analysts say that planned additional capacity at Nintendo suppliers outside of China will help mitigate trade war risks, as major contract manufacturers are expected to complete expansion work in Vietnam and Cambodia this year.

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Whether Nintendo's bet pays off depends in part on how long Vietnam, in particular, can avoid Trump's tariffs. It has the third largest trade surplus in the world with the United States.

Some analysts predict that Nintendo's strategy will be to simply set a price and adjust it depending on potential tariffs, which they believe will be accepted by buyers given the high demand for the Switch 2.

Reminder 

Earlier, UNN wrote that the Ministers of China, South Korea and Japan will meet in Seoul to discuss economic cooperation. According to reports, they are likely to discuss a free trade agreement after the countries' leaders pledged to accelerate relevant negotiations last May. 

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