Nintendo Switch 2 and Sony PS5 game consoles may become more expensive due to Trump's tariffs

Japanese entertainment industry giants Nintendo Co. and Sony Group Corp. are likely to raise prices on their game consoles in response to US tariffs.

This is evidenced by the latest research by Bloomberg Intelligence, writes UNN.

Details

American consumers will pay 30% more for a Switch 2 or PlayStation 5 under a baseline scenario that envisions a price of around $590 for Nintendo's soon-to-be-released flagship console or Sony's PS5 Astro Bot bundle.

Both devices are assembled in China, which is now subject to a 125% duty for shipments to the US. In addition, Nintendo is also expanding production in Vietnam, which has a 90-day deferral from increased tariffs.

According to BI analyst Nathan Naidu, console makers are the most vulnerable players in the video game industry because they are involved in hardware manufacturing and must deliver physical goods.

According to him, the US accounts for 29% of Tokyo-based Sony's revenue and 37% of Kyoto-based Nintendo's sales. The market is indispensable for both companies: American consumers determine global trends, and word-of-mouth recommendations increase demand for entertainment products.

It is assumed that a 30% price increase for the Nintendo Switch 2 depends on the introduction of tariffs on imports into the US in the amount of 80% to 90%.

Nevertheless, Nintendo may refrain from raising prices, as it can take advantage of the 90-day tariff deferral to further increase its inventories in the US

Nintendo's partner, Hosiden Corporation, has shifted almost all of its production in Vietnam to the US market since the beginning of the year, suggesting that inventories are already building up.

Computer manufacturers, similarly, spent the first quarter of the year accelerating shipments to the US in anticipation of potential duties. Even after the Trump administration's three-month pause on the harshest duties - with the exception of tariffs for China - there is still a fixed fee of 10% that the US now charges on any goods coming from abroad.

Shares of gaming giants fallNintendo shares fell 5.4% and Sony shares fell 9.4%. This was a continuation of a volatile week, with both companies posting double-digit gains just the day before. The uneven stock price performance reflects uncertainty about the tariffs proposed by Trump, particularly the question of exemptions that countries like Japan may receive.

Nintendo's future depends on the success of the upcoming Switch 2 console, which will soon become the main platform for showcasing many popular game franchises and characters. Sony may find it harder to maintain sales of the more expensive PS5, which is already over four years old.

Xbox maker Microsoft Corp. may have the easiest time of the three, Naidu said, as it is less dependent on manufacturing partners subject to higher tax levies in the US.

Addition

Nintendo postpones Switch 2 pre-orders in the US due to uncertainty over Trump's tariffs. The company's shares fell by 10%, despite the planned release of the console on June 5.