Pemalite said:
IcaroRibeiro said:
Nintendo is never selling Switch 2 for 650, nobody but their more dedicates fans will buy. More likely they will sell it for the same profit range of Switch 2 in Japan (it's ~340 USD there), but slightly over for some operational costs that should be bigger in USA. So maybe they will sell for 380 USD, and expect Americans to pay 550 USD Or they will move their manufacturing for another country with lower tarrifs, but this of course can't be done overnight. It will take months, maybe years |
The thing with the tariffs is that it only matters at the time of import.
So Nintendo can keep manufacturing the Switch 2.0 at it's currently locations and just move the point of "assembly" to a low-tariff region before going through the import process.
This can actually happen very rapidly... And consequently the assembly process can be done in multiple locations at once. |
That is probably not the case.
I work in international tax, albeit not with tariffs. There are plenty of regulations that are intended to prevent using a certain country as a conduit to secure a more favorable tax rate or to shift income. I would be incredibly surprised if the tariffs did not have some similar feature.