*** The Official Nintendo Switch 2 ***

Timber said:
.... it Nintendo raising the prices in other regions to subsidise the US market are all possible. Who knows. But Nintendo sold nearly 40% of all Switch units in USA.
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If they did that, I think it would be very badly received and would tank sales. Btw, in its financial reports Nintendo lumps all the sales from the US, Canada & South America together. I've seen some articles suggest that it's closer to 25% of all Switch sales were from the US. Still a very large market to lose ( due to tariffs ), but the ROW accounts for the bulk of sales.
 
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delta0 said:
It’s only the US impacted due to the tariffs. There’s no reason the UK or the rest of the world would be impacted as they don’t have the tariffs.
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Were NA residents able to order early from 3rd party stores (Walmart, BestBuy, NewEgg etc) like we were here?
 
Timber said:
Not to dissagree because you're correct. But we don't know there won't be an impact yet. Maybe not for launch, but more stock for other regions, it Nintendo raising the prices in other regions to subsidise the US market are all possible. Who knows. But Nintendo sold nearly 40% of all Switch units in USA.
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I guess they could try and do that to keep the sales going there. However I’m not sure are going to be able to subsidise potentially $200 off the consoles. Subsidising might also be seen as anticompetitive. The US might take a dim view on it and the WTO usually do.
 
[timko] said:
Bummer. I can understand now why it's such a big deal. The potential for the price to increase even before anyone has had a chance to even pre-order is tricky situation.
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Less tricky than people actually preordering at $449 and then the price needing to be $600 because of the applied tariffs.
 
I expect Nintendo are waiting to see what comes from the Vietnam negotiations. I expect they are looking at ways to minimise the impact. Some countries were less impacted such as Philippines so they could consider moving production. I’m not sure at what point the tariffs apply as the components will be coming from various countries and it’s then assembled as a product in Vietnam and Cambodia. If Trump is going to change his mind the people of the US need to bear the brunt of this. Their pain will become his.
 
[timko] said:
Bummer. I can understand now why it's such a big deal. The potential for the price to increase even before anyone has had a chance to even pre-order is tricky situation.
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Yes, it's a bad situation for Nintendo commercially. As the console is made in Vietnam, it will be subject to a 46% tariff as things stand. In other words, the console could be over $600 at launch. That will scare off, or price out, a lot of customers.
 
xaldub said:
Did it come out on both then ? I still have the Amiibo, but sold off my Wii U and 3DS years ago when the Switch was launched.
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3DS got remasters of Majora and Ocarina. That was all. Wii U TPHD was created specifically for the Wii U and came about when they were deciding on the art style for BotW. They made a version on the hardware to test out things. Working with a 3rd party developer to help finish it while most of the Nintendo team were working on BotW.
 
xaldub said:
Btw, in its financial reports Nintendo lumps all the sales from the US, Canada & South America together. I've seen some articles suggest that it's closer to 25% of all Switch sales were from the US. Still a very large market to lose ( due to tariffs ), but the ROW accounts for the bulk of sales.
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True, but the US will be the largest market. Can't find a breakdown for Canadian's & South America sales figures but I'd guess it's much, much smaller. Something like a third of all sales.

delta0 said:
I guess they could try and do that to keep the sales going there. However I’m not sure are going to be able to subsidise potentially $200 off the consoles. Subsidising might also be seen as anticompetitive. The US might take a dim view on it and the WTO usually do.
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Maybe not $200, but it could be $100 and then make the rest elsewhere. Maybe you increase margins on other items, or subscription in other regions. There's nuance to this. It was reading some analyst muse about it, that reminded me that as the world's largest market go gaga with tariffs it's likely to have some impact on Europe and other regions.
 
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Timber said:
True, but the US will be the largest market. Can't find a breakdown for Canadian's & South America sales figures but I'd guess it's much, much smaller. Something like a third of all sales.



Maybe not $200, but it could be $100 and then make the rest elsewhere. Maybe you increase margins on other items, or subscription in other regions. There's nuance to this. It was reading some analyst muse about it, that reminded me that as the world's largest market go gaga with tariffs it's likely to have some impact on Europe and other regions.
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I’m not sure there is no risk to destroying sales elsewhere by increasing the price. Plus Americans earn way more than others.
 
The NSO version of Wind Waker does look quite nice from what they showed. I have been playing it slowly on Gamecube and got to Dragon Roost Island recently. In all honesty, the Gamecube at 480p can be very clean, but Wind Waker has some blur and dithering (which really show up when upscaled to 4K). I have been tempted to get the Wii U out of storage for the better graphics. I would imagine with the emulation dithering will be gone, and we will see plenty of other image quality improvements. Some of those QoL fixes will be missed though :D.

I am intrigued to see what else Nintendo add to the service. Resident Evil 0 - Code Veronica would be great. Eternal Darkness, The Twin Snakes please Nintendo. Could we even see Wii games?
 
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delta0 said:
I’m not sure there is no risk to destroying sales elsewhere by increasing the price. Plus Americans earn way more than others.
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There's always risk. But equally Nintendo slapping $200-$250 onto the price of it's new major console in the world's largest market doesn't come with risk?

Of course this extends well beyond just Nintendo, but they are the ones launching their new console in two months.
 
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As far an I’m concerned that’s an American problem.

Other countries do have tariffs on electronics and their citizens pay the price plus the tariff. I don’t see why anyone else should be subsidising them or the Americans.

If these tariffs continue, what I suspect will happen going forward is global companies not based in the USA will stop pricing by things in USD and working out other prices based on the USD price. They could well move to Euro or their domestic currency. That would be a massive own goal for the USA.
 
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Timber said:
Not to dissagree because you're correct. But we don't know there won't be an impact yet. Maybe not for launch, but more stock for other regions, it Nintendo raising the prices in other regions to subsidise the US market are all possible. Who knows. But Nintendo sold nearly 40% of all Switch units in USA.
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Cross-subsidisation won't happen. It would lose Nintendo even more money if they did it.

I've said this here before, but prices are not set by accident. They are precisely calculated in each region to maximise profit, by balancing profit per unit with sales volumes. Trump has thrown that calculation off in the US, so Nintendo now has to accept less profit per unit to preserve sales, or retain its profit per unit at the expense of overall sales (or do a hybrid somewhere in the middle). So one way or another, Nintendo will make less money in the US. For them to respond to this by raising prices in other regions would be irrational and would make them lose more money.

After all, prices in the rest of the world are still set at what they think is the optimal balancing point. I can guarantee you nobody at Nintendo has said "Let's go easy on the UK and make a bit less profit there". If they raise prices in the rest of the world, they will harm demand there and, assuming their market research has been correct, they will make less money overall. Maybe not at launch - day 1 buyers aren't that price-sensitive - but certainly within a year.

The only rational response is to let the US eat the consequences and keep them isolated to the US. It looks like that's what Nintendo are doing, as pre-orders are going ahead as planned in the rest of the world.
 
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Rogueywon said:
Cross-subsidisation won't happen. It would lose Nintendo even more money if they did it...
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I agree with a lot of what you're saying, but I don't think some of that is true at all. The numbers must go up. And yes, Nintendo will have to react to the USA's impact in the short and long-term.

IGN did interview some leading analyst's in the industry for intial reactions and one fact was clear, just how unprecedented and uncharted some of this all is.
 
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