Nintendo has announced a delay in the opening of pre-orders for its highly anticipated new console, the Nintendo Switch 2, following significant economic uncertainty stemming from recent tariff announcements by US President Donald Trump. Originally scheduled to begin on April 9, 2025, US customers will now have to wait longer as Nintendo seeks to assess the potential impact of the tariffs before confirming a new pre-order date. The launch date for the console remains unchanged, set for June 5, 2025.
In a statement issued to the media, Nintendo confirmed, “Pre-orders for Nintendo Switch 2 in the US 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 compact gaming console, which features enhancements including an improved screen and a dedicated button for chatting with friends, is expected to retail for $450, a price point that has attracted attention for its perceived elevation compared to previous console launches.
The economic landscape has shifted dramatically following President Trump's announcement on April 2, where he imposed tariffs of at least 10% on a wide array of imports, including significant hikes targeting countries such as China and Vietnam, where components for the Switch 2 are reportedly manufactured. This has raised concerns among analysts regarding potential price inflation across various consumer technology sectors, which may lead to increased retail prices for the console and its games, which are already pegged to cost around $80 each.
The gaming industry is not the only sector feeling the tremors of this economic shift. Klarna, a leading buy-now-pay-later fintech company, has also decided to postpone its planned initial public offering (IPO) in the US, originally set to launch next week. This decision comes amidst a broader sell-off in the US stock market, where significant declines have been observed across major indices such as the S&P 500 and Nasdaq, each losing over 4% of their value amid fears of a looming trade war and a potential global recession. Reports indicate that Klarna was aiming for a valuation of $15 billion, a substantial increase from its last funding round valuation of approximately $6.7 billion in 2022.
Alongside Klarna, ticketing service StubHub has also reportedly pulled back on its own IPO plans, reacting to the same market conditions that have prompted a wider reassessment among companies in the technology and fintech sectors. As the market exhibits volatility, many companies are scrutinising their financial strategies while traders and ordinary Americans observe the heightened risks associated with the ongoing situation.
Overall, both the delay in the Nintendo Switch 2 pre-orders and the halting of Klarna's IPO illustrate the financial ripple effects from the recent tariff decisions, with a multitude of firms across various industries now navigating the implications of these sudden economic changes.
Source: Noah Wire Services