A new gaming console from Nintendo might cost less than expected, but recent trade rules could change that. A leaked price tag at Costco in Canada shows CAD$499 (about $350 in US dollars) for Nintendo’s next gaming system, known as the Switch 2.
“We want prices to be affordable and in line with consumer expectations,” says Nintendo‘s leader Shuntaro Furukawa. He’s talking about finding the right balance between making a great product and keeping it within reach for families. The current Nintendo Switch sells for $299, while the upgraded OLED version costs $349.
But there’s a catch. New trade rules that started February 4th mean companies must pay a 10% tariff on products made in China. The Consumer Technology Association says these extra costs often get passed down to shoppers, potentially raising prices on gaming devices and related products.
“It’s not just that your console is going to be more expensive,” explains gaming expert Joost van Dreunen from New York University. “It’s everything around it as well.” This matters because most gaming devices and their parts come from China.
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Nintendo has been preparing for such situations. They’re trying to move up to 50% of their production to Vietnam, says market expert David Gibson. But many essential parts still come from China. It’s like moving your kitchen to a new house but still getting your groceries from the old neighborhood store – you’re still affected by price changes there.
The Entertainment Software Association, which represents game makers, warns these extra costs could negatively impact hundreds of millions of Americans. Video games are “one of the most popular and beloved forms of entertainment for Americans of all ages,” they state.
What does this mean for someone wanting to buy the new Nintendo system? If you’re planning to get one when it launches, you might want to start saving a bit extra. While the leaked $350 price sounds good, the final cost could be higher once these new trade rules take effect.
Nintendo has scheduled a Direct event for April 2nd. That’s when we might learn more about their upcoming plans. For now, both gaming experts and everyday shoppers are watching to see how Nintendo balances making an exciting new product while keeping it affordable for families.