08.05.2025

A U.S. trade group has cautioned that proposed tariffs by the Trump administration could lead to a 69% increase in costs for video game consoles for American consumers

The Consumer Technology Association (CTA) recently issued an update to a report from January 2025, which highlights a potential surge in costs for importing technology products into the United States. The increase could range from 24% up to 69.4%, with video game consoles potentially witnessing the upper limit if tariffs proposed by the Trump administration are implemented.

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According to a report spotted by Tom’s Hardware and prepared by the Trade Partnership Worldwide, video game consoles, largely imported from China—which faces 145% tariffs—are projected to be significantly affected if the tariffs move forward at their forecasted rates. Consoles import from China currently make up 87% of the total.

Should these tariffs proceed, the video game console market could see a reduction of $10.4 billion per year across the US economy. Analysts predict console prices might soar to nearly $428, potentially resulting in a 71% drop in imports and a 73% decline in consumer spending, a figure reaching approximately $12 billion.

In light of the evolving tariff situation under President Donald Trump's administration, pre-orders for the Nintendo Switch 2 were postponed in the US. Nonetheless, the release date remains June 5.

The high pricing of the Switch 2 was discussed by analysts who pinpointed inflation and other economic conditions as contributing factors, even prior to the tariff issues arising.

In related news, Nintendo disclosed its financial results for the fiscal year, showing a decrease in net revenue and earnings as it gears up for the June 5 launch of the Switch 2. The company forecasted sales projections of 15 million hardware units and 45 million software units for the new console.

In Japan, pre-orders for the Switch 2 have already drawn applications from 2.2 million individuals.

gamesindustry.biz
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