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Nintendo Switch 2 News: No Price Hike Despite Tariffs

Nintendo Switch 2 pre-orders still haven’t gone live, but there’s no cause for concern just yet. Analysts continue to signal good news, indicating the base price remains at $450. Robin Zhu from Bernstein confirmed that this price point should hold steady as long as the current 10% tariff rate stays in effect. This reassurance aligns with prior statements and gives clarity to fans waiting for pre-order availability.

As of now, the U.S. has paused tariffs for 90 days, easing cost pressures for imported electronics. This decision benefits Nintendo directly, as the company shifted production from China to Vietnam to avoid higher tariffs. The move initially caused delays and confusion, but the reduced tariffs help stabilize pricing. If higher tariffs return, however, the Switch 2’s base price could increase by $50 to $100. This change would raise the Mario Kart World bundle to as high as $600, but for now, the $450 entry point looks secure.

Nintendo Switch 2 Sold at a Loss: What That Means

Hideki Yasuda from Tokyo Securities reported that Nintendo plans to sell the Switch 2 at a financial loss. The new system’s chip reportedly costs nearly twice as much as its predecessor, contributing to a production cost of approximately $400. With additional expenses from shipping and retailer cuts, Nintendo faces a loss at the $450 price point.

This is a notable shift in strategy for Nintendo. Unlike Microsoft and Sony, which frequently sell hardware below cost to profit from software, Nintendo usually breaks even or gains on hardware sales. In the past, the company even took a loss on the Wii U, but that was an exception. Now, the Switch 2 joins that list, with Nintendo prioritizing consumer-friendly pricing over profit margins.

Despite speculation that the console could have launched at $500, Nintendo held firm. This decision likely reflects a desire to undercut competitors and reach a broader audience. Considering the performance enhancements, including better frame rates and higher refresh rates, the Switch 2 represents a significant upgrade. With these improvements, the $450 tag becomes more palatable, especially when factoring in that the company is not earning profit on each unit sold.

Nintendo Switch 2 News: Digital vs. Physical Bundle Confusion

The Mario Kart World bundle sparked confusion due to its differing formats. In most markets, the bundle includes a digital copy of the game. However, images circulating online show a physical cartridge included with the console. This is not a random inclusion for select buyers—it reflects regional differences. Countries without access to the eShop, such as Saudi Arabia, Taiwan, Singapore, Malaysia, Thailand, and the Philippines, receive the physical version.

These physical versions are only distributed where necessary. For nearly all other regions, buyers receive a download code. While some may prefer cartridges, the digital version allows Nintendo to save on packaging and distribution. The $30 savings can be directed toward other accessories or games, making the digital version more appealing to many.

Nintendo could have offered a choice between formats, but uniform pricing at $499.99 streamlines retail logistics. A $515 SKU with a cartridge would appear inconsistent on store shelves. For most buyers, the $30 discount outweighs the value of a physical case.

What Comes Next for Switch 2 Pricing and Launch

With the Mario Kart World Direct scheduled for next Thursday, speculation continues around the timing of pre-order announcements. Retailers rarely reveal major news over weekends, so Monday or Tuesday appears most likely. Nintendo may align pre-orders with the Direct, or it could proceed independently.

The system’s pricing appears locked, barring future tariff increases. The company’s approach—launching at a loss while absorbing manufacturing costs—demonstrates its confidence in the system’s long-term value. Sales from software, accessories, and online services will likely offset the initial loss.

Meanwhile, the Mario Kart World Direct is expected to highlight key features, including potential enhancements to single-player mode and online competitive options. Nintendo’s strategy of slow information rollout aligns with past trends, and additional features could strengthen the perceived value of the $500 bundle.

For now, the Switch 2’s $450 price point looks like a win for both consumers and Nintendo, offering a high-quality system at a reasonable price despite external cost pressures.

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