Analysts speculate that Nintendo might sell the upcoming Switch 2 at a loss while maximizing production in Vietnam for shipment to the US. Nintendo officially unveiled the Switch 2 on April 2, 2025. However, the announcement coincided with new tariffs imposed by the Trump administration, which has raised concerns over the console’s pricing structure in North America. Following the announcement of these tariffs, Nintendo delayed pre-orders for the Switch 2 in the US and Canada, but has not yet revealed a new pre-order date.

This has led to speculation that the company may increase the price of the console in the US. Despite this uncertainty, some analysts, including those at Bloomberg, believe that Nintendo may opt to absorb the tariff costs rather than passing them on to consumers, suggesting that each unit could be sold at a loss. Currently, while the new tariffs are paused for a period of 90 days in most regions, they remain in effect in China, where the tariffs have even increased. In contrast, Nintendo plans to manufacture as many Switch 2 units as possible in Vietnam, where the tariff stands at 10 percent compared to the 125 percent levy in China.

Analyst Hideki Yasuda from Toyo Securities estimates that the production cost of the Switch 2 is around $400, which indicates that even with the lower tariff rate in Vietnam, Nintendo would still be selling the console at a loss in the US. Looking ahead, if Vietnam’s tariff were to increase—as it was previously set at 46 percent before the pause—Nintendo may be compelled to raise the price of the Switch 2. Bernstein’s analyst, Robin Zhu, believes that while the price will likely remain at $450 with the current 10 percent tariff, an increase could lead to a price hike of $50 to $100 in the US, depending on future tariff adjustments.