{"id":279864,"date":"2025-04-11T19:15:09","date_gmt":"2025-04-11T19:15:09","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/11\/nintendo-switch-2-and-sony-ps5-likely-to-get-price-hikes-due-to-tariffs\/"},"modified":"2025-04-11T19:15:09","modified_gmt":"2025-04-11T19:15:09","slug":"nintendo-switch-2-and-sony-ps5-likely-to-get-price-hikes-due-to-tariffs","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/11\/nintendo-switch-2-and-sony-ps5-likely-to-get-price-hikes-due-to-tariffs\/","title":{"rendered":"Nintendo Switch 2 and Sony PS5 Likely to Get Price Hikes Due to Tariffs"},"content":{"rendered":"<div style=\"text-align:center\"><img decoding=\"async\" src=\"https:\/\/i3.wp.com\/i.gadgets360cdn.com\/large\/switch_2_1740667864375.png?ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Nintendo Switch 2 and Sony PS5 Likely to Get Price Hikes Due to Tariffs\" title=\"Nintendo Switch 2 and Sony PS5 Likely to Get Price Hikes Due to Tariffs\" \/><\/div><p> <br \/>\n<\/p>\n<div>\n<p>Japanese entertainment giants Nintendo and Sony Group are likely to raise prices on their game consoles in response to US tariffs, according to the latest research from Bloomberg Intelligence.<\/p>\n<p>American consumers would pay as as much as 30 percent more for a <a class=\"sp_lnk2\" href=\"https:\/\/www.gadgets360.com\/tags\/nintendo-switch-2\">Switch 2<\/a> or <a class=\"sp_lnk2\" href=\"https:\/\/www.gadgets360.com\/tags\/ps5\">PlayStation 5<\/a> under the base-case scenario, which would imply pricing close to $590 (roughly Rs. 50,765) for the soon-to-be-released Nintendo flagship machine or Sony&#8217;s PS5 Astro Bot bundle. Both devices are assembled in China, which is now subject to a 125 percent 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.<\/p>\n<p>Console makers are the most vulnerable players in the video game industry, said BI analyst Nathan Naidu, due to their hardware businesses and need to ship physical goods. The US accounts for 29 percent of revenue for Tokyo-based Sony and 37 percent of sales for Kyoto-based Nintendo, he said. The market is indispensable for both companies: US consumers drive global trends, and word-of-mouth recommendations boost entertainment product demand.<\/p>\n<p>A 30 percent price hike in Nintendo&#8217;s Switch 2 is contingent on an 80 percent to 90 percent tariff imposed on its US imports, according to Bloomberg Intelligence&#8217;s base case scenario, Naidu said. \u201cStill, Nintendo might hold back from raising prices as it can use the 90-day reprieve on tariffs to further bolster its US stockpile.\u201d<\/p>\n<p>Nintendo partner Hosiden Corp. has committed almost all of its Vietnam production from the start of this year <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-10\/nintendo-s-pivotal-switch-2-launch-boosted-by-trump-tariff-pause\" target=\"_blank\" rel=\"nofollow noopener\">to the US market<\/a>, showing the stockpiling effort is already underway. PC makers, similarly, spent the first quarter of the year <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-09\/pc-shipments-grew-at-fastest-pace-in-four-years-to-avoid-tariffs\" target=\"_blank\" rel=\"nofollow noopener\">hastening shipments to the US<\/a> in anticipation of potential tariffs. Even with a three-month pause from Donald Trump&#8217;s administration on the most severe tariffs \u2014 except for those on China \u2014 there&#8217;s still a flat 10 percent levy that the US is now charging on any incoming goods from overseas.<\/p>\n<p><a class=\"sp_lnk2\" href=\"https:\/\/www.gadgets360.com\/tags\/nintendo\">Nintendo<\/a> shares fell 5.4 percent and <a class=\"sp_lnk2\" href=\"https:\/\/www.gadgets360.com\/sony\">Sony&#8217;s<\/a> shares dropped 9.4 percent 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 <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-10\/japan-to-keep-pressing-for-tariff-relief-during-90-day-pause\" target=\"_blank\" rel=\"nofollow noopener\">exemptions<\/a> countries like Japan might win. A representative from Nintendo declined to comment. A Sony spokesperson did not respond to a request for comment.<\/p>\n<p>For Nintendo, the 90-day window clears up the picture around the June 5 launch of the Switch 2 and provides time to ship what could be millions more units to the US from Vietnam. Even so, the company has yet to open pre-orders in the US, which it <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-04-04\/nintendo-delays-pre-orders-for-switch-2-after-trump-tariffs\" target=\"_blank\" rel=\"nofollow noopener\">delayed indefinitely<\/a> to assess Washington&#8217;s tariff announcements.<\/p>\n<p>Should Sony or Nintendo have to hike US prices significantly, there&#8217;ll be pressure to reflect the change across global markets, Naidu said.<\/p>\n<p>Nintendo&#8217;s future 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. Sony may find it tougher to sustain sales of a more expensive PS5\u00a0which is now more than four years old. Xbox maker Microsoft may have the easiest time of the three, Naidu said, as it&#8217;s less reliant on production partners that are subject to higher US levies.<\/p>\n<p><em>\u00a9 2025 Bloomberg LP<\/em><\/p>\n<p><i>(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)<\/i><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.gadgets360.com\/games\/news\/nintendo-switch-2-sony-ps5-price-hike-tariffs-8138810#rss-gadgets-news\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japanese entertainment giants Nintendo and Sony Group are likely to raise prices on their game consoles in response to US tariffs, according to the latest research from Bloomberg Intelligence. American consumers would pay as as much as 30 percent more for a Switch 2 or PlayStation 5 under the base-case scenario, which would imply pricing [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":279865,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/i.gadgets360cdn.com\/large\/switch_2_1740667864375.png","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[1261,5397,22258,46795,216521,13692,1718,13312,12730,17173,161888,18165],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/279864"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=279864"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/279864\/revisions"}],"predecessor-version":[{"id":279866,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/279864\/revisions\/279866"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/279865"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=279864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=279864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=279864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}