| CourageTCD said: I've heard Nintendo sits in a pile of money due to Wii+DS and now Switch's sucess. That they had money to survive 2 or more Wii Us. If that's true, wouldn't it be better if they stick with Switch 2's current price and simply take the hits of these tariffs using that money I mentioned? If they rise up Switch 2's price even more, the Nintendo brand could be damaged to a no return point (it has been damaged already with the games' price polemic) |
Nintendo has that kind of money as cash reserves, but they don't have control over what retailers charge. For argument's sake, let's say that Nintendo's plan was to sell Switch 2 for $400 to American retailers who then it sell for $450 to consumers. If Nintendo now adjusted their price to retailers to only $200, retailers might just say that they'll charge $600 regardless, because the American population is facing significantly higher prices for all kinds of products due to the tariffs. In that case Nintendo would take a loss for absolutely nothing.
Nintendo won't raise the selling price to retailers because of the tariffs. What the tariffs mean is that retailers will pay the same $400 from the above example to Nintendo and then $160 to the US government if we go with a tariff of 40%. The cost for the retailer is then $560, so they'll put a $600 price tag on it to make a profit from it. But this wouldn't damage the Nintendo brand because all kinds of goods will see a significant price increase at the same time, including the PS5.
Legend11 correctly predicted that GTA IV will outsell Super Smash Bros. Brawl. I was wrong.
