this post was submitted on 03 Apr 2025
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Will Tariffs Increase Switch 2's Price? Why The Console And Games Are So Expensive (www.gamespot.com)
submitted 1 year ago by misk@sopuli.xyz to c/games@sh.itjust.works
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Mat Piscatella of Circana said this is an unprecedented and "chaotic" situation as it relates to tariffs and their impact on video games, so anyone claiming to know how things will shake out may be speaking out of turn.

"All anyone can do at this point is speculate. We are certainly in uncharted waters here, and no one really knows what will happen next," he told GameSpot. "Obviously, the announced tariffs are having an immediate impact on the financial markets. And given the haphazard nature of how the tariffs are being calculated and applied, uncertainty is really the only certain thing at the moment."

Piscatella said there is "absolutely the chance" that the new tariffs or any additional future tariffs might amount to changes for US consumer products, and not just for Nintendo but for all players.

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[โ€“] RightHandOfIkaros@lemmy.world 15 points 1 year ago (9 children)

If the tariffs do increase the price, it won't be a flat 25% increase or whatever the tariff is set to.

A misconception I keep seeing people incorrectly repeat is that a 25% tariff on an item I can buy at the store for $100 USD today, means tomorrow it will cost me $125. This is wrong, and not how tariffs work. If you see a price increase like that, that is price gouging, using a tariff as a shield. You are getting scammed.

The 25% tariff is based on whatever the imported cost of the item is, not the MSRP or final sale price. Lets just say for simplicity that the Switch 2 cost $100 for us to buy it. But, for a store to import the product, they buy it directly from Nintendo for a cost of just $35 USD per unit (again, for simplicity). A 25% tariff would be a tax of $7.50 USD that the store would need to pay per Switch console. In this hypothetical, a 25% tariff on that item would mean you would only expect to see a final price increase to $107.50 due to tariffs, and not a final price of $125.

Please be informed, don't let yourself be scammed.

[โ€“] UnbrokenTaco@lemm.ee 2 points 1 year ago* (last edited 1 year ago)

Interesting. For games consoles, the markup for retail is probably like 10 percent or less. So the final price in your example would be between 122.50 and 125 anyway, right?

*Also, my source on the 10% is a random Reddit commenter so take that with a grain of salt

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