Nintendo Delays Switch 2 Pre-Orders, Price May Go Over $600

Nintendo has officially canceled U.S. pre-orders for the upcoming Nintendo Switch 2 just days after it was announced around the world. This came as a surprise to both fans and people in the industry. Why? A sudden and severe change in the rules of international trade. The new U.S. tariffs have made production costs go through the roof. 

At this point, Nintendo is still unsure if the next-gen console will cost $500, $600, or even more. Many gamers are worried that this price could be the breaking point for the industry. Just five minutes before the news came out, Nintendo confirmed the delay in a statement: "It was wrongly said that pre-orders for the Nintendo Switch 2 would begin on April 9 in the U.S. We need to figure out what effects tariffs and changing market conditions might have".

Later, a new schedule will be given, but the launch date has not yet been changed. This move has shocked the gaming community, especially since the Switch 2's price of $449.99 was already raising fans' eyebrows. With the threat of a 25–50% price hike, people have gone from being somewhat skeptical to completely panicked. If you're wondering why the next-gen games you want might cost three or more times as much, the reason is international trade. 

On April 4, the U.S. government announced broad tariffs on electronics and manufacturing imports. These tariffs affect almost all consoles, even those made outside of the U.S., which is pretty much all of them. There is a tax on goods brought in from other countries. A 25% tariff on a $400 game console immediately makes it cost $500 before retailers add their markup. Tariffs are charged every time parts or products cross borders more than once.

Nintendo moved much of their production to Vietnam before tariffs were imposed to avoid higher costs. But since blanket tariffs are now in place, that strategy doesn't offer much protection either. Sony and Microsoft, on the other hand, often sell at a loss to build install bases, while Nintendo has traditionally made a small profit on each console sold. Nintendo has always used cheap parts to make their products, which allows them to make about $20 a console.

However, because tariffs could add hundreds to the costs of making and shipping games, Nintendo has to make a hard choice. They could keep retail prices low by subsidizing the cost, even if it means losing a lot of money or raising prices, which could make people not want to buy a console that is already thought to be pricey.

A $500–$700 Nintendo console would be the first of its kind. When you add in $100 controllers, $100 accessories like webcams, and $100 games, the Nintendo Switch 2 starts to look like a luxury item in a market that usually relies on low prices for many people.

As soon as the news broke, social media went crazy. Angry posts were all over the forums and social media. Many people think the fallout is due to the U.S. government's trade policy, while others are just fed up with the industry's constant price rises.

For gamers who have played a lot, this moment feels eerily familiar. We saw a similar financial crisis in 2008 when the market wasn't ready for big hardware upgrades, so studios and manufacturers pushed back the release of next-gen games.

Now that the economy is getting worse, people in the gaming industry are already saying that the current-gen console might be extended again. This could mean that the PlayStation 6 won't come out until 2029 or even 2030. Games aren't the only ones having trouble. Making games is getting more expensive. Studios already spend tens of millions of dollars on AAA games. If tariffs cause costs for labor, hardware testing, and distribution to go up, that will have a direct effect on game prices. You thought $70 was too much? Try $120.

Surprisingly, the Switch 2's games are really great. Nintendo says that there will be a new Donkey Kong, Mario Kart, and a few other top-tier exclusive games. There is a catch, though: each one costs $100. It was already controversial, just to say that. It seems like the worst time to ask fans for more money since console prices are going to go up soon.

Nintendo says the launch date has not changed, but pre-orders in the U.S. are still being held up. Before committing to a new price, Nintendo is probably waiting to see how the tariff situation changes and whether they can find a way to cut costs or change its strategy.

The gaming industry is at a turning point. The prices of consoles and games are going through the roof, and fans are losing patience. Nintendo's choice to stop pre-orders could be the best thing it can do right now. It also shows how weak the market has become, though.