The Nintendo Switch 2 is expected to launch in March 2025 with a price likely above $400, potentially reaching $499 due to higher production costs, including a more expensive chipset. Bloomberg reports that analysts predict strong sales despite the higher price, citing diversified manufacturing in Vietnam and China to mitigate risks.
The article discusses Nintendo's upcoming Switch 2 console, which is expected to have a higher price point than the original. Nintendo's reliance on third-party distributors in Malaysia and their manufacturing in Vietnam and China are highlighted as strategies to mitigate risks like US tariffs.
Bloomberg reported on the Switch 2's potential pricing, citing analysts who communicate with Nintendo and its partners. Bloomberg's analysis suggests confidence in Nintendo's sales despite higher prices.
The article mentions that the original Nintendo Switch used NVIDIA's Tegra X1 chip at US$80, while the Switch 2 is rumored to use a more expensive chipset costing between US$130 and US$150. This indicates increased costs for components, potentially affecting Nintendo's margins.
Vietnam is one of the manufacturing locations for the Switch 2, which helps Nintendo diversify its supply chain to lower risks associated with US tariffs and other geopolitical factors.
China is another manufacturing location for the Switch 2, aiding Nintendo in risk mitigation through a diversified production footprint.
The Nintendo Switch 2’s launch marks a pivotal moment in the console market, with its price point, hardware capabilities, and strategic positioning poised to influence both short-term sales and long-term industry dynamics.