Absolutely. The console is manufactured in Vietnam, which now has a 46% tariff. I really doubt that Nintendo’s profit margin is high enough to allow them to just eat that cost.
They already factored in some amount of tariffs into the US price. It’s not really that it’s cheaper in Japan, but rather it’s more expensive in the USA. It’s also US$65 cheaper in Australia, for example, and even cheaper in the UK.
(keep in mind that advertised prices in Australia and the UK include tax, so you need to subtract the tax to compare with US prices)
The tariffs are just a lot higher than everyone expected. Nintendo were probably preparing for a 20% tariff, not a 54% one.
Absolutely. The console is manufactured in Vietnam, which now has a 46% tariff. I really doubt that Nintendo’s profit margin is high enough to allow them to just eat that cost.
Couldn’t they move it to another country first to reduce it a bit?
Maybe! I’m sure there’s loopholes of some sort.
Which begs the question of why the console is going to be $100 cheaper for Japanese than anyone else even before you factor in the tariff situation.
They already factored in some amount of tariffs into the US price. It’s not really that it’s cheaper in Japan, but rather it’s more expensive in the USA. It’s also US$65 cheaper in Australia, for example, and even cheaper in the UK.
(keep in mind that advertised prices in Australia and the UK include tax, so you need to subtract the tax to compare with US prices)
The tariffs are just a lot higher than everyone expected. Nintendo were probably preparing for a 20% tariff, not a 54% one.