We suspect Goldman analysts Minami Munakata and Haruki Kubota will soon update clients on today’s report from The Verge. The report reveals that Nintendo is delaying preorders for the new Switch 2 due to the fallout from President Trump’s “Liberation Day” tariff blitz and China’s retaliatory measures, which are roiling global markets and trade.
Nintendo spokesperson Eddie Garcia told The Verge:
Preorders for Nintendo Switch 2 in the U.S. will not start April 9, 2025 in order to assess the potential impact of tariffs and evolving market conditions. Nintendo will update timing at a later date. The launch date of June 5, 2025 is unchanged.
Nintendo plans to launch the Nintendo Switch 2 (the successor to the Nintendo Switch) on June 5. There’s still no word from Garcia about when preorders will begin.
There’s still no word on Switch 2 pricing following the new effective tariff rate of 24% on Japanese goods, as The Verge noted.
The Switch 2 costs $449.99 and comes with several upgrades, including a larger 7.9-inch 1080p display, 256GB of storage, and a C-button for in-game chats. We don’t know yet whether the Switch 2 or its accessories will go up in price in response to the tariffs. The Switch 2 is already significantly more expensive than its $299 predecessor, while its games have a steeper $69.99 to $79.99 price.
Last month, Goldman analysts Minami Munakata and Haruki Kubota were super bulls on Nintendo, noting that “the global games market re-entered a growth phase since 2024” and forecasted “the number of active consoles to continue renewing fresh highs globally from 2025.”
Their bullishness in the gaming industry was mainly because Switch 2 would “unlock dormant hardware and dormant users” and send “the number of active consoles to continue to renew record highs.”
However, with tariffs in play, the Switch 2 and its accessories will likely be priced higher. That raises a key question for the analysts—likely to be addressed in a client note this weekend:
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Will the increased cost of the device prompt a revision to their active console forecast?
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And, in turn, could a downward revision in the forecast trigger a 12mo price target cut for Nintendo shares in Tokyo?
. . .
Tyler Durden
Sat, 04/05/2025 – 07:35
