Nintendo Switch 2 and Sony PS5 likely to get price hikes due to tariffs

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Nintendo Switch 2 and Sony PS5 likely to get price hikes due to tariffs
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UNITED NATIONS: The United Nations and its partners on Friday (April 11) launched an appeal worth US$275 million to support Myanmar's response to the devastating earthquakes.

The future of Nintendo hinges on making the upcoming Switch 2 console a success, as it will soon be the primary platform for delivering its many popular game franchises and characters. — Reuters

American consumers would pay as as much as 30% more for a Switch 2 or PlayStation 5 under the base-case scenario, which would imply pricing close to US$590 for the soon-to-be-released Nintendo flagship machine or Sony’s PS5 Astro Bot bundle. Both devices are assembled in China, which is now subject to a 125% duty for shipments to the US, although Nintendo also has an expanding production footprint in Vietnam, which has a 90-day reprieve from elevated tariffs.

A 30% price hike in Nintendo’s Switch 2 is contingent on an 80% to 90% tariff imposed on its US imports, according to Bloomberg Intelligence’s base case scenario, Naidu said."Still, Nintendo might hold back from raising prices as it can use the 90-day reprieve on tariffs to further bolster its US stockpile.”

Nintendo shares fell 5.4% and Sony’s shares dropped 9.4% in Tokyo on Friday, adding to a volatile week that just a day earlier had both companies registering double-digit moves up. The uneven stock price moves reflect uncertainty about the tariffs floated by Trump, including questions about the exemptions countries like Japan might win. A representative from Nintendo declined to comment. A Sony spokesperson did not respond to a request for comment.

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