In response, Nintendo took the extraordinary step ofdelaying Switch 2 preordersamidst market uncertainty.
Tariffs are even higher on goods coming from China and Vietnam, where Nintendo is manufacturing the system.
“There may be a supply issue if Nintendo chooses to limit production initially,” noted Cole.
“Nintendo is very conservative and they don’t like to take big risks on having surplus inventory.
So they may take a bit of a wait-and-see approach given some of the current unknowns.”
DFC’s projection for Switch 2’s launch numberswere also revised downwardfrom 17 million to 15 million in 2025.
The Entertainment Software Association has already warned thatthe tariffs may severely harm the video game industrybeyond Nintendo.
Other analysts have said that video game publishersmay abandon physical releases altogetherin order to avoid the tariffs.
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