Switch 2 Pre-Order Freeze Underscores Potential Impact of US Tariffs on PS5

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On Friday, April 4th, 2025, at 4:45 pm, as the US government’s fresh tariff policies became clearer, Nintendo made an announcement about delaying pre-orders within the region with no fixed end date.

Starting pre-orders for Nintendo Switch 2 in the U.S. on April 9, 2025 has been postponed due to the need to examine possible tariff effects and changing market conditions. Nintendo will announce a new timeline later on. The initial launch date of June 5, 2025 remains unaltered.

This action by the company is truly groundbreaking, and it underscores the potential severity of the influence that Trump administration’s tariffs could exert upon the video game industry.

In conversation with The Game Business, Aubrey Quinn from the ESA expresses concern about the potential negative influence. She stated, “Yesterday’s announcement regarding global tariff adjustments will indeed have a tangible and harmful effect on the video game industry,” she explained.

In the world of console production, though China is a key player, several parts and processes are performed in various nations prior to the final product’s completion.

As a gamer, I’d like to clarify something about the manufacturing process of modern video game consoles: it’s not as simple as having one central factory churning out every component. Instead, these devices are assembled using parts from various countries around the world. Consequently, any tariffs imposed on these components will add up, making the final product potentially more expensive for consumers.

Game consoles face a higher level of risk due to their thin profit margins on the actual hardware. To compensate, companies such as Sony generate additional income by selling software and related accessories.

The decision by Nintendo to postpone pre-orders for their newly announced console serves as clear evidence of the impending impact of tariffs. It’s likely that Sony will also exercise caution when it comes to the release of the PS5.

There’s growing anticipation that the U.S. may soon implement increased tariffs across all imported items, causing observers to worry about potential increases in the cost of PlayStation 5 units.

Beginning on April 5, 2025, a uniform 10% tariff will be imposed on all imports entering the U.S. Furthermore, increased taxes will be implemented for approximately 60 countries as of April 9.

The cost of the PS5 serves as an illustrative case study for understanding how such changes can impact both high-end and commonplace goods, including luxury and everyday items.

The import cost of goods manufactured en masse in China, such as the PS5, is increasing due to a tariff of at least 54 percent. This additional expense may end up being borne by consumers through higher retail prices.

As a devoted gaming enthusiast, I’ve been keeping an eye on some intriguing economic predictions floating around the PlayStation 5 subreddit. It seems that if tariffs are applied, we might expect the Digital Edition PS5 to be priced around $750, and the rumored PS5 Pro could potentially reach about $1,350.

Although we can’t confirm it at present, it seems quite probable that similar consequences may arise in the future. As things stand, manufacturers are already making preparations to address any possible effects.

For example, Sony has accumulated a supply of PS5 consoles in the United States temporarily, and they are considering shifting their manufacturing facilities to other locations to mitigate the impact.

For several months, spectators and experts have been closely monitoring the situation, as the U.S. government’s plans have progressed. According to analyst Mat Piscatella from Circa, the potential tariffs might lead to the demise of the market for physical games.

The situation continues, and there may be exceptions for specific product categories or other possible changes. It’s tough to predict the full impact, but if you’re considering buying a PS5, it would be prudent to make the purchase early, just in case.

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2025-04-04 19:37