The past 48 hours have been tumultuous for both economic enthusiasts and Nintendo fans alike. On Wednesday, it was revealed that the Nintendo Switch 2 would be priced at a steep $450 in the U.S. Analysts attribute this high cost to anticipated tariffs, along with other factors such as inflation, competition, and the rising costs of components.
Adding to the chaos, the Trump Administration announced sweeping 10% tariffs on virtually all countries last night, with significantly higher tariffs imposed on nations like China, the EU, Japan, Vietnam, Canada, Mexico, and more. In retaliation, China unveiled a 34% reciprocal tariff on all U.S. goods this morning. In the wake of these developments, Nintendo made the decision to postpone pre-orders for the Nintendo Switch 2 in the U.S., as they assess the impact of these tariffs on their console plans.
This unprecedented situation affects not just gamers but the broader economy, leaving analysts, experts, and the public grappling to understand its implications. Just 30 minutes before Nintendo's announcement, I spoke with Aubrey Quinn, a spokesperson for the Entertainment Software Association (ESA), to discuss how these tariffs might reshape the gaming industry.
The ESA, like many others, is still piecing together how these changes will unfold. Quinn mentioned that while they anticipated some form of tariffs due to past actions and campaign rhetoric from Trump, the extent and the retaliatory measures from countries like China were less predictable. The full impact remains uncertain, but the ESA is clear about one thing: these tariffs will have a negative effect on the video game industry.
“We really are, at this point, just watching and trying not to have knee-jerk reactions, because we don't think that what President Trump announced this week is the end of the story," Quinn said. "But what was announced this week and the tariffs as outlined, we do expect these tariffs will have a real and detrimental impact on the industry and the hundreds of millions of Americans who love to play games. Our goal is to work with the administration, to work with other elected officials to try to find a solution that doesn't damage U.S. industries, U.S. business, but also American gamers and families.”
Quinn emphasized that these tariffs would affect more than just the price of gaming systems. She stated, “It’s hard to imagine a world where tariffs like these don’t impact pricing.” Beyond pricing, consumer spending, company revenues, jobs, research and development, and even the design of future consoles could be affected. “The entire consumer ecosystem is connected,” she explained.
In response, the ESA is taking action, albeit with challenges due to the newness of the Trump Administration. Quinn highlighted the difficulty in leveraging past relationships, given the recent appointments to Trump's cabinet. Nevertheless, the ESA is determined to forge new connections and engage in public and private sector dialogues to mitigate the impact on businesses and consumers within the U.S.
The ESA has already joined forces with a coalition of trade associations to communicate their concerns to U.S. Trade Representative Jamieson Greer before the tariff announcement. They are also seeking meetings with legislators and administration members to discuss these issues. When asked if their efforts were being heard, Quinn confirmed ongoing conversations at various government levels, emphasizing that this issue extends beyond the gaming industry to affect all consumer products.
For concerned consumers, Quinn suggested reaching out to their representatives through letters, calls, emails, or social media to voice their concerns. “I think the more members of government, elected officials, and their staff who hear that their constituents are concerned, the more likely we are to be heard and to potentially make an impact,” she stated.
Shortly after our conversation, Nintendo announced the postponement of Nintendo Switch 2 pre-orders due to the tariffs. While the ESA refrains from commenting on individual company actions, Quinn addressed the broader impact of tariffs on the gaming industry during our discussion. She noted the unfortunate timing of the Nintendo Switch 2 announcement with Trump's tariff declaration and stressed that the impact would be felt across various gaming platforms, not just the Switch. “This is going to have an impact. And even American-based companies, they're getting products that need to cross into American borders to make those consoles, to make those games. And so there's going to be a real impact regardless of company. This is company-agnostic, this is an entire industry. There's going to be an impact on the entire industry,” she concluded.
