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Nintendo’s Preorder Delay Raises Concerns Over Proposed Tariffs

This morning’s announcement from Nintendo regarding the delay of US preorders for the Switch 2 has accentuated the relevance of President Trump’s proposed extensive import tariffs, particularly among the millions of American fans of the gaming giant. The implications of these tariffs extend beyond just Nintendo, according to the Entertainment Software Association (ESA), which advocates for the interests of the gaming sector in Washington.

ESA’s senior vice president, Aubrey Quinn, discussed the broader implications of the tariff proposals in an interview with IGN, emphasizing that the gaming industry encompasses far more than just a single console. “Gamers utilize numerous devices,” she stated, referencing consoles, virtual reality headsets, smartphones, and personal computers. “If we think this issue is limited to the Switch, then we’re not grasping its full impact.”

Quinn further articulated that the situation transcends company-specific issues, stating, “This affects the entire industry,” and highlighted the potential ramifications for a wide spectrum of gaming hardware. Trump’s proposal includes a 10 percent tariff on imports from nearly all nations, alongside significantly higher tariffs of 46 percent on products from Vietnam and a staggering 54 percent on imports from China, where a majority of console hardware is manufactured. Quinn noted the difficulty in envisioning a scenario where such tariffs do not drive up pricing on gaming consoles.

The impact of these tariffs would not only escalate the prices of consoles but also dampen overall consumer spending, consequently affecting game industry revenues, employment rates, and investment in research and development. The ESA pointed out that video game consoles are traditionally sold with minimal profit margins to make them accessible to consumers. “Tariffs would mean that these additional costs would ultimately be passed on to consumers, creating a detrimental ripple effect across the industry and the jobs it sustains,” they remarked on their issue page regarding tariffs.

A Domestic Challenge

Quinn also stressed that the adverse effects would not be restricted to foreign entities like Nintendo. “American companies will also be impacted,” she noted, explaining that these businesses rely on products that must cross US borders to manufacture consoles and develop games. Therefore, the ramifications of the proposed tariffs would resonate throughout the entire gaming industry, regardless of where the companies are based.

Source
arstechnica.com