If the tariff is too great the cost becomes unspreadable. Spreading cost requires other regions to still afford the new price, and with numbers like this that’s unlikely.
About one-third of Switches were sold in the US. Spreading a 145% tariff means hiking everyone’s prices by 40-50%. That will murder sales in other regions.
Better to eat a 30% temporary loss that adds pressure on Trump to reverse-course than to eat an even higher loss and face backlash worldwide for making others pay for Trumps idiocy.
To add to this: I’m in a region where the base Switch 2 price is already very unaffordable when you compare it with our wages and cost of living. And then you throw in the games… which Nintendo conveniently left out prices of for us (they did list the bundle though, so I’m extrapolating from that). But Nintendo won’t care since we’re already a very small market. But if they did that in more markets to the point of being unaffordable in most places? Sales would crash. There’s a reason they have a cheap region locked variant for the Japanese market.
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If the tariff is too great the cost becomes unspreadable. Spreading cost requires other regions to still afford the new price, and with numbers like this that’s unlikely.
About one-third of Switches were sold in the US. Spreading a 145% tariff means hiking everyone’s prices by 40-50%. That will murder sales in other regions.
Better to eat a 30% temporary loss that adds pressure on Trump to reverse-course than to eat an even higher loss and face backlash worldwide for making others pay for Trumps idiocy.
To add to this: I’m in a region where the base Switch 2 price is already very unaffordable when you compare it with our wages and cost of living. And then you throw in the games… which Nintendo conveniently left out prices of for us (they did list the bundle though, so I’m extrapolating from that). But Nintendo won’t care since we’re already a very small market. But if they did that in more markets to the point of being unaffordable in most places? Sales would crash. There’s a reason they have a cheap region locked variant for the Japanese market.