Extra shipments, new factories, and more: How Nintendo is looking for the great escape from Trump tariffs for Switch 2

Nintendo Switch 2

Nintendo may be preparing to sell the Switch 2 at a loss in the US, a rare move for the company. Unlike Sony or Microsoft, which often subsidize hardware to push software sales, Nintendo typically makes money on the console itself. According to a report by Bloomberg, that approach may be unsustainable under the current global trade climate.

Following last week’s tariff announcements, US President Donald Trump has eased the harshest measures for most countries. However, Chinese imports now face a staggering 125% tariff, while other countries, including Vietnam, still carry a minimum 10% levy. That’s significant for Nintendo, which manufactures about a third of its Switch 2 consoles in Vietnam. The US—Nintendo’s biggest single market, accounting for a third of its revenue—is now in the crosshairs.

In response, Nintendo is reportedly ramping up production in Vietnam during the current 90-day tariff freeze, hoping to flood the US with consoles before costs spike. Still, even under the existing 10% tariff, analysts say Nintendo could lose money on each $450 unit. The estimated bill of materials? Around $400. Factor in tariffs and logistics, and margins really shrink.

The report quotes Toyo Securities’ Hideki Yasuda, who believes Nintendo can absorb the loss in the short term, especially given its software dominance. But if Vietnam-based imports get hit with steeper duties—say, 46%—analysts like Bernstein’s Robin Zhu expect a price hike of $50 to $100 may be inevitable.

Adding to the complications, Nintendo briefly paused pre-orders in the US and Canada, likely to reassess pricing in light of tariff uncertainty and to avoid scalper-driven chaos. But with the clock ticking and demand looming, the company is now under pressure to finalise pricing and logistics before the tariff window closes.

Nintendo’s upcoming Switch 2 is shaping up to be a bigger, better version of its wildly popular predecessor—but not radically different. You’re still getting detachable Joy-Cons, though now they can function as pants-trackable mice (yes, really). The screen is larger, there’s more power under the hood, and the addition of a built-in mic finally brings native voice chat. But where Nintendo might be taking its boldest leap isn’t in hardware—it’s in its pricing strategy.