this post was submitted on 04 Apr 2025
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Wonder if the price of the console and even the cartridge games will change.
I think they necessarily will. I can't imagine retailers eating the lost margin.
Retailers won't eat it all, consumers will
More like retailers won't eat any of it and will take the opportunity to raise prices even more because they know consumers are expecting higher prices and they have pressure to retain or increase their margins to meet shareholder expectations.
Carts and console could very much change. Some estimates say up to 50% up.
Given that digital games will not this could make the Switch a de facto digital-only thing in the US.
I mean, assuming Trump isn't beaten with a stick into submission in the next couple of weeks. We'll see.
Either way, this situation is pretty damn funny to me. But then I do hate Nintendo for going against emulators and I won't give them another cent ever.
He's hanging out at a golf tournament today. I don't think he's feeling the pressure.
Absolutely. The console is manufactured in Vietnam, which now has a 46% tariff. I really doubt that Nintendo's profit margin is high enough to allow them to just eat that cost.
Couldn't they move it to another country first to reduce it a bit?
That would cost them enormous amounts of cash and hours of work just for one market.
There’s no point, the best option is just to ignore the US and let them pay more than the rest of the world, even if that means fewer sales.
Well does it cost them more or less than the tariff. That is pretty much the only question, its not that much work if it results in a lot of savings.
Savings for who? If nothing is changed and manufacturers (and retailers) doesn’t make any kind of commercial gesture, the only ones paying more are the American consumers.
So moving the manufacture would be a saving for every Joe and Jane in the US, not Nintendo nor the ROTW.
Not moving the manufacture might be a loss of % in their US consumer base as prices will be too high there, but is it big enough to justify the enormous costs needed to move an entire industry workflow?
I don’t think so, specially when there is so many instability in the US politic, if you move to an other country at great cost and 2 weeks later a new tariff is declared (because why not), you moved everything for no reason but still lost your investment.
My belief is that no industry nor country will adapt, they will just increase the US market prices and keep on living like before with the ROTW. The only ones to suffer will be the American citizens and I’m sorry for them, but there is an all planet to trade with.
Maybe! I'm sure there's loopholes of some sort.