Nintendo Switch 2 and Sony PS5 Prices May Increase in the US Amid Rising Tariffs

TOKYO/WASHINGTON, April 12 Video game console prices in the United States are expected to rise sharply as Nintendo and Sony face mounting pressure from newly imposed US tariffs on Chinese imports, according to a new analysis from Bloomberg Intelligence. Both companies assemble their hardware in China, exposing them to up to 125% import duties—a factor that could drive consumer prices up by as much as 30%.

Tariffs Trigger Supply Chain Concerns for Nintendo and Sony

Nintendo’s upcoming Switch 2 console, set to launch on June 5, and Sony’s PlayStation 5 (PS5) could see price hikes of $130 to $150 depending on how the US enforces tariff policy. This would push the retail cost of the Switch 2 close to $590, significantly higher than current-gen console pricing.

• Nintendo’s US revenue share: ~37%

• Sony’s US revenue share: ~29%

• Both companies assemble devices in China, making them highly vulnerable to tariffs

“Nintendo might hold back from raising prices immediately by using the 90-day tariff reprieve and stockpiling US-bound inventory from its Vietnam operations,” said Nathan Naidu, BI analyst. However, the pause does not apply to Chinese imports, which remain subject to the full tariff rate.

Shift to Vietnam and Supply Chain Adjustments Underway

To mitigate the impact, Nintendo’s manufacturing partner Hosiden Corp. has reportedly redirected nearly all Vietnam-based production to the US market since the start of the year. This shift is part of a broader trend, with PC and electronics makers accelerating US shipments before tariffs go fully into effect.

Despite the temporary exemption for Vietnamese goods, a flat 10% tariff is now applied on most overseas goods entering the US, adding a baseline cost increase to all imports regardless of origin.

Market Impact and Strategic Implications

The stock market responded swiftly to the uncertainty:

• Nintendo shares fell 5.4%

• Sony shares dropped 9.4% on Friday

This follows a volatile trading week, with both companies previously experiencing double-digit gains. The sharp reversal highlights investor anxiety over potential tariff impacts and lack of clarity around exemptions for US allies like Japan.

Sony has not yet issued a public statement on the matter. Nintendo has reportedly delayed US pre-orders for the Switch 2, pending more information from Washington on long-term tariff policy.

If Sony or Nintendo raise prices significantly in the US, they may face global pricing pressure to maintain parity across regions—a move that could affect their market competitiveness worldwide.

Microsoft May Benefit Amidst Tariff Troubles

Interestingly, Microsoft’s Xbox division is seen as less impacted due to its diverse manufacturing partners and broader production base. This gives it an advantage in a market where hardware affordability and supply chain flexibility are now key differentiators.

Conclusion: A Turning Point for Gaming Hardware Pricing

The combination of tariff pressure, supply chain shifts, and volatile economic policy puts Sony and Nintendo in a challenging position. Consumers could soon see steep price increases for flagship consoles like the Switch 2 and PS5, unless manufacturers find alternate production routes or the US adjusts its tariff stance.

With the Switch 2 set to define Nintendo’s future and the PS5 entering its mature sales cycle, both brands may need to rethink pricing, distribution, and global launch strategies in the months ahead.