Nintendo’s Potential Response to US Tariffs on Imports
In response to the recent 10% tariff on Chinese imports by the U.S. government, there are concerns about potential price increases for consoles and accessories manufactured in China. Nintendo president Shuntaro Furukawa has addressed these concerns, stating that the company is evaluating the impact of these tariffs for the upcoming financial year and the release of the Switch 2. As reported by Reuters and translated by Nintendo Everything, Furukawa mentioned during a press conference that Nintendo is “predicting various geopolitical risks and establishing ways to respond.”
Furukawa also pointed out that the Nintendo Switch is not solely produced in China, with manufacturing operations also in countries like Vietnam and Cambodia. Due to many Switch consoles already being imported into the U.S. before the tariffs took effect, the financial impact for this fiscal year is expected to be minimal according to Furukawa. However, the potential impact on the following fiscal year and the launch of the Switch 2 remains uncertain.
Last year, Nintendo expanded its manufacturing outside of China when facing similar tariff threats. In a collaborative effort, Nintendo, Sony, and Microsoft sent a joint letter to the U.S. government warning about the negative implications of tariffs on the gaming industry if consoles were not exempt from these taxes. While the outcome was favorable in 2019, the current status does not indicate any exemptions. The true impact of price increases on consumer spending remains to be seen, especially with an anticipated new console release.
If there are any updates on the impacts of tariffs on Switch 2 sales, we will provide further information.
[Source: jp.reuters.com, via nintendoeverything.com]