Switch 2 Pre-Order Freeze Underscores Potential Impact of US Tariffs on PS5

Update [Fri 4th Apr 2025, 3:45pm]: As the US government's new tariff plans come into focus, Nintendo has announced that pre-orders in the region are being postponed indefinitely.

"Pre-orders 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," the statement reads. "Nintendo will update timing at a later date. The launch date of June 5, 2025 is unchanged."

This is an unprecedented move from the company, and it shows just how serious an impact the Trump administration's tariffs may have on the gaming sector.

Speaking to The Game Business, the ESA's Aubrey Quinn warns that the effect will be significant. "What was announced yesterday will have a real and detrimental impact on the video game industry," she said, referring to Trump's unveiling of global tariff changes.

While China is just one player in the realm of console manufacturing, many components and procedures are carried out in multiple countries before the products are complete.

"It’s not like there is a console factory that is pumping out every piece of a console," Quinn says. "All modern consumer electronics, including video game devices, are made with parts from multiple countries of origin. That means that any one final product is likely to be subjected to many of the tariffs yesterday, and they will all be compounded on top of one another."

Game consoles are particularly at risk because the profit margins on the hardware is notoriously slim. Companies like Sony make up the difference through the sale of software and accessories.

Nintendo's move to delay pre-orders for its just-announced console is all the proof you need of the incoming effects these tariffs will have, and Sony will no doubt be treading just as cautiously regarding PS5.

Original Story: The United States is on the verge of imposing significantly higher tariffs on all imported goods, and onlookers are concerned about the immense impact this will likely have on the price of PS5.

From 5th April 2025, a blanket 10 per cent will be applied to all goods coming into the US, and in addition, greater levies will be put in place for some 60 countries from 9th April.

While this is of course infinitely grander in scale than just the cost of a games console, the price of PS5 is a good example of the effect these changes will have on luxury (and everyday) items.

China is being hit with a tariff of at least 54 per cent, making products mass-produced in the country (like PS5) significantly more expensive to import. These costs are likely to be passed onto the masses via the retail price tag.

Some armchair economics on PS5's subreddit estimate a Digital Edition PS5 could cost roughly $750, and PS5 Pro could be about $1,350, after the tariffs come into effect.

While we're not certain about those figures, the reality is there will very likely be repercussions like this in the future. It's all up in the air right now, but manufacturers have already begun planning for the potential impact.

Sony, for instance, has stockpiled an inventory of PS5s in the US as a short-term measure, and it's planning to move its production pipeline elsewhere to lessen the blow.

Fans and analysts have been keeping an eye on this for months as the US government's plans have developed. Circana's Mat Piscatella reasons that the tariffs could kill the physical games market.

The situation is ongoing, of course; there could be exemptions put in place for certain product categories, or any number of other developments. It's difficult to ascertain exactly how much this will affect things, but if you're planning on getting a PS5, it might be wise to do that sooner rather than later, to be on the safe side.