Of the rest of Nintendo’s incoming Switch 2 units, the company is now heavily focusing on the United States. The deal has led the company to prepare for its widely expected initial public offering on June 5. According to recent reports, Nintendo has ramped up its global inventories by as much as five times. In addition, they’re anticipating what looks like it’s going to be extremely high demand for the new console.
Nintendo also recently faced some delays in US preorders for the Switch 2. These delays mark tangible consequences to the everyday Americans hurt by the effects of tariffs on imports. Those same assumptions have the company thinking of raising the price even higher than the projected $449.99. These continuously increasing tariffs have left them little choice but to overcorrect and raise their prices by much more.
Trump’s Tariff Pause Offers Relief
In response to precisely this issue, President Donald Trump canceled most reciprocal tariffs for 90 days. This related move has dramatically leveled the playing field. This delay gives Nintendo room to ramp up shipments so they can hopefully keep pricing stabilized leading into the launch. It’s a difficult context. Since then, Trump has dramatically increased these tariffs on Chinese imports to an all-time high of a staggering 125%.
Nintendo has received some relief from extended manufacturing operations in Vietnam and Cambodia. The final struck tariffs are a lot lower for these countries, only 10% compared to well above 40% from China. Such a strategic decision would allow Nintendo to create a healthy buffer of Switch 2 units before the successor launches. Vietnamese customs data suggests that Nintendo might be able to build up “millions” of consoles by the time June comes.
To support those preparations, Nintendo could already have well over 1 million Switch 2 consoles in the US. Doug Bowser, President of Nintendo of America, stated, “We’ve had some time to build up inventories on a global basis.” This kind of proactive approach to inventory management puts Nintendo in a unique position to capitalize on consumer demand.
Thanks to a very successful reveal of the Switch 2 at the Paris Games Week, interest is definitely pulsing among gamers right now. Apple’s recent release of its supply chain data indicates 22 million iPhones have recently moved from Vietnam to the United States. This ongoing trend is emblematic of the tech industry’s urgency to expand their manufacturing base outside of China. For reference, Apple only shipped 383,000 units from Vietnam in January and just over 700,000 units in February alone.
Author’s Opinion
Nintendo’s proactive inventory strategy ahead of the Switch 2 launch reflects the company’s deep understanding of market demands and the shifting dynamics of global trade. By strategically boosting its stockpile in the U.S. and adjusting its manufacturing operations outside China, Nintendo is positioning itself to navigate tariff pressures while ensuring that its most coveted product reaches consumers on time. The decision to shift production to countries with lower tariffs shows their agility in the face of trade wars, and it’s likely to ensure a successful launch despite external challenges.
