Nintendo Faces Trade War Test with Switch 2 Launch

An attendee plays with the Nintendo Switch 2 gaming device at a media event in Tokyo, Japan April 3, 2025. (Reuters)
An attendee plays with the Nintendo Switch 2 gaming device at a media event in Tokyo, Japan April 3, 2025. (Reuters)
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Nintendo Faces Trade War Test with Switch 2 Launch

An attendee plays with the Nintendo Switch 2 gaming device at a media event in Tokyo, Japan April 3, 2025. (Reuters)
An attendee plays with the Nintendo Switch 2 gaming device at a media event in Tokyo, Japan April 3, 2025. (Reuters)

Nintendo's Switch became a source of much-needed escapism during pandemic restrictions. Now, the Japanese video game company faces the harsh reality of a brutal trade war as it launches its successor device.

The Switch 2 is set to debut on June 5. That is eight years after the original Switch, which has sold 150 million units and disproved naysayers who predicted the decline of the console.

While the trade war has put the focus on industries such as cars and chips, the maker of "Super Mario" and "Donkey Kong" games must also grapple with tariffs disrupting its business.

For Nintendo, trade barriers complicate one of the hottest product launches this year as the success of the Switch 2 is vital for the future profitability of the company.

The Switch 2 launch will test Nintendo's ability to manage its supply chain, as it works to secure sufficient supply for the United States while maintaining the $449.99 price tag.

"If the tariffs are really going to hit them, they probably still need to raise the price for the Switch 2," said Serkan Toto, founder of the Kantan Games consultancy.

Nintendo announced the device's price and launch date on April 2, the same day US President Donald Trump unveiled sweeping import tariffs, after an initial reveal in January.

The company then paused the start of US pre-orders as it examines the impact of tariffs before announcing it would maintain Switch 2 pricing with pre-orders beginning on April 24.

Nintendo hiked the cost of some accessories and said in a statement other adjustments "are also possible in the future depending on market conditions."

"The accessory price hikes can only soften the blow to some extent," Toto said.

The company has experienced supply chain ructions in the past with production not limited to China, which has been hit with 145% tariffs on goods entering the US.

"Nintendo plans to supply the US from Vietnam and Cambodia production, under normal demand assumptions," said Robin Zhu, an analyst at Bernstein.

Vietnam and Cambodia have also been hit with tariffs, though the higher levies have been paused for 90 days.

The US is a major market for Nintendo with the Americas making up 44% of Nintendo's sales in the financial year ended March.

"Even in the bear case where Nintendo faces reciprocal tariffs of 46% in Vietnam and 49% in Cambodia, I'm assuming they will have to absorb that cost," said Jay Defibaugh, an analyst at CLSA.

Ampere Analysis forecasts sales of 4.6 million Switch 2 units in the US in 2025, out of 13.2 million units globally.

"I don't think momentum will be impacted in North America," said Piers Harding-Rolls, an analyst at Ampere Analysis.

Experts said hardcore fans would buy the Switch 2 even at higher prices, but a hike could risk sapping demand among the casual players who turned the original Switch into a mega hit.

The sticker price of new gaming hardware is seen as one of the most important factors determining success, with the price of the original Switch also closely scrutinized.

Gamers have been complaining about the 50% price rise compared to the Switch and the higher cost of new software such as the $79.99 "Mario Kart World".

The Switch 2 price tag is seen by some analysts as already factoring in uncertainty over the trade war.

"Nintendo has a wealth of experience in managing the supply chain," said CLSA's Defibaugh.

The expansion of tech giants into gaming and the growth of mobile led some observers to question the need for bulky hardware.

However, Nintendo and Sony continue to hold a leading role in the industry.

Earlier this month, Sony hiked prices of its PlayStation 5 (PS5) in Europe and Britain with some analysts expecting price rises in the US.

The PS5's own launch was disrupted by the COVID-19 pandemic affecting sales earlier in the cycle.

Analysts are generally positive about the prospects for the Switch 2, which offers continuity from its predecessor, with a larger screen and better graphics.

"There's a lot of pent-up demand for a more powerful Switch experience," said Ampere's Harding-Rolls.



Google Will Pay Texas $1.4 Billion to Settle Claims the Company Collected Users’ Data without Permission

A Google logo is seen at the company's headquarters in Mountain View, California, US, November 1, 2018. (Reuters)
A Google logo is seen at the company's headquarters in Mountain View, California, US, November 1, 2018. (Reuters)
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Google Will Pay Texas $1.4 Billion to Settle Claims the Company Collected Users’ Data without Permission

A Google logo is seen at the company's headquarters in Mountain View, California, US, November 1, 2018. (Reuters)
A Google logo is seen at the company's headquarters in Mountain View, California, US, November 1, 2018. (Reuters)

Google will pay $1.4 billion to Texas to settle claims the company collected users' data without permission, the state’s attorney general announced Friday.

Attorney General Ken Paxton described the settlement as sending a message to tech companies that he will not allow them to make money off of “selling away our rights and freedoms.”

“In Texas, Big Tech is not above the law,” Paxton said in a statement. “For years, Google secretly tracked people’s movements, private searches, and even their voiceprints and facial geometry through their products and services. I fought back and won.”

The agreement settles several claims Texas made against the search giant in 2022 related to geolocation, incognito searches and biometric data. The state argued Google was “unlawfully tracking and collecting users’ private data.”

Paxton claimed, for example, that Google collected millions of biometric identifiers, including voiceprints and records of face geometry, through such products and services as Google Photos and Google Assistant.

Google spokesperson José Castañeda said the agreement settles an array of “old claims,” some of which relate to product policies the company has already changed.

“We are pleased to put them behind us, and we will continue to build robust privacy controls into our services,” he said in a statement.

The company also clarified that the settlement does not require any new product changes.

Paxton said the $1.4 billion is the largest amount won by any state in a settlement with Google over this type of data-privacy violations.

Texas previously reached two other key settlements with Google within the last two years, including one in December 2023 in which the company agreed to pay $700 million and make several other concessions to settle allegations that it had been stifling competition against its Android app store.

Meta has also agreed to a $1.4 billion settlement with Texas in a privacy lawsuit over allegations that the tech giant used users' biometric data without their permission.