Nintendo has announced a delay in the pre-orders for the Switch 2. The company cited "the potential impact of tariffs and evolving market conditions" as the reason for this unprecedented move.

The decision comes on the heels of mounting concerns surrounding the gaming community, particularly after the console was priced at $449.99 in the U.S. and £395.99 in the U.K., which is quite higher than the previous model's pricing.

Industry analysts have long predicted that the new tariffs imposed on goods from China could lead to higher hardware and software prices. Currently, Nintendo has relocated its production from China to Vietnam and Cambodia, where the tariffs stand at a staggering 46% and 49%, respectively. These rates are far higher than analysts initially anticipated, leading to speculation that Nintendo may soon be forced to raise the retail price of the Switch 2 to $500 or more if tariffs remain in place.

"It's very difficult to predict, but the likelihood of price hikes is real," stated Dr. Serkan Toto, CEO of Kantan Games. While some experts believe the current price has already accounted for potential economic challenges, others warn that if the situation remains unchanged, a significant price increase could alienate broader consumers during the crucial launch period.

Mat Piscatella, from market research firm Circana, reiterated that considerable tariff-related pricing adjustments could alter consumer perceptions of the product. "The U.S. could be on the verge of joining territories known for elevated video game prices due to these tariffs," he explained.

Fans had been highly anticipating to pre-order the Nintendo Switch 2 on April 9, but it is now unclear when they would be able to place an order for the handheld gaming console. Nintendo's decision to postpone pre-orders may give it more time to assess the market dynamics. If the tariffs are not alleviated soon, the Nintendo Switch 2 could launch at a price point that challenges its appeal, especially against the backdrop of its first holiday season.

Gamers are also concerned about Switch 2 game prices, which could cost up to $80 for a digital version, and $90 for a physical edition.

Source: TechRadar