Nintendo is launching the Switch 2 in early June amidst tariff uncertainties that could impact profits. President Shuntaro Furukawa revealed the company anticipates a loss of several tens of billions of yen, roughly $67 million, due to ongoing tariff rates as of April 10. However, a recent trade agreement between the US and China has significantly lowered tariffs effective May 12, potentially altering Nintendo's financial outlook leading into the console's release. The Switch 2 will likely have lower profit margins than the original, necessitating careful price strategy.
Our basic policy is that for any country or region, if tariffs are imposed, we recognize them as a part of the cost and incorporate them into the price. However, this year marks our first new dedicated video game system launch in eight years, so given our unique situation, our priority is to maintain the momentum of our platforms, which is essential.
Nintendo has factored in a negative impact of "several tens of billions of yen at the profit level." This indicates significant concern over potential financial losses tied to changing tariffs.
Collection
[
|
...
]