Nintendo and Sony are facing pressure to raise console prices to compensate for tough US tariffs as the Trump administration reimposes steep tariffs on electronics assembled in China.
The move could see American gamers paying up to 30% more for the upcoming Switch 2 or PlayStation 5 bundles.
With the Switch 2 slated for a June 5 launch at US$450, a 30% hike could push the price close to US$590. Bloomberg Intelligence says Sony’s PS5 Astro Bot bundle could see similar increases, driven by a 125% duty on Chinese imports.
Both companies are scrambling to shift production – Nintendo has been stockpiling units from Vietnam, which has a 90-day reprieve from US tariffs.
Nintendo shares fell 5.4% on Friday in Tokyo, while Sony slid 9.4%, reflecting investor concern over disrupted supply chains and delayed US pre-orders. Research firm DFC Intelligence has already cut its 2025 sales forecast for the Switch 2 from 17 million to 15 million units.
The US is a key market for both Japanese giants, accounting for 37% of Nintendo’s and 29% of Sony’s revenue. Bloomberg analysts warn that console makers are particularly vulnerable in the trade war, given their dependence on physical goods and razor-thin hardware margins.
Microsoft may emerge the least affected among the big three, with less reliance on high-tariff regions for Xbox production.
Whether Nintendo chooses to absorb the costs or pass them onto consumers could shape the success of its first major console launch in eight years.
