Tariffs on games themselves to that degree would completely doom the physical release market, it would completely the solidify the digital-only future that publishers want. Note on the increased ratio of physical games sales in Nintendo compared to other consoles: Another huge factor there is storage size. The base Switch has, like, 8 or 16gb? I can't remember. But there are Switch games that are singlehandedly bigger than what one Switch can even download by default.
Base Switch has more than 16GB. Everything I can put on my SD card is on my SD card and Switch from 2017 has 23.7GB available. So it must have been 32GB internal storage with like 6GB probably reserved for the OS. Like it is bad in this day and even back in 2017 to only have 32GB but it's not as quite as bad as remember.
@@zeroshadow-warrior2304 Wow, I was way off then. Still, it seems Witcher 3 and Mortal Kombat 11 are both bigger than 32gb alone, and thats ignoring those 6gb of the OS
@@GameMageVideos just get a fast/reliable 256 GB storage like mine (sandisk for games) and be happy forever. I barely use half of it (I do prefer physical games for big ones: better prices, unless it is one o those 30% rare sales - also, it is the only way that you actually purchase a game, since digital copies are JUST paid loans).
no need to dodge the weak yen, because of their huge business overseas in dollars, they can repatriate those dollars for maximum profits in their home country when converted back to Japanese Yen. Companies like Nintendo and Toyota, and other companies with big overseas business, see higher profits in this scenario.
Do not forget NTDOY vs NTDOJ. NTDOY ADR stocks are worth 1/4 a NTDOJ share, but are fully American and represent NOA side. Under the same economic conditions from 2016-2020 they got through tariffs by leaning on their American side.
@@matthewcoreyhall nah. The thing is that tariffs are made so products from inside can compete more favourably than other countries' products. They, theoretically, try to compensate for the devaluation from better access to resources or lower human costs. However, no console house makes their consoles on the US, so even Microsoft will suffer the tariffs, and their consumers as well.
@@cyberrb25 I think they were referring more to the weak yen/strong usd than the tariff half of the scenario. Every usd they receive from their exported products is worth my than every yen they receive from those within their own country.
@Boulder7685 I definitely wouldn't phrase it like that on the second paragraph tho. The issue is that either they have to sell Switch 2 at a markedly higher rate than other countries with similar range (think Switch 2 USD500 in the US/€400 in Europe), or they will get way less money out of each console sold. Maybe they will still get more out of each console compared to Japan (a friend got his on a trip there for almost half the expected cost in our country), but it will still be a brutal cost on their books, either by lack of sales, or lack of money obtained.
6:11 Adjusting for inflation might make prices comparable to the 1990's. But what is not comparable. Is that the average household had more disposable income in the 90's.
I liked that a lot as well. We Americans could stand to learn a thing or two hundred about that. Not that I'd expect some people here to understand. That would require a will to learn and self awareness as well as questioning your own world views.
I was literally just searching to see if anyone had covered the impact of the US election on the Switch 2, and lo and behold, you have a fresh video on the topic! You are rapidly becoming my favourite Nintendo UA-camr; nowhere else can I find insights into politics and Nintendo news, my two longest standing passions.
Remember that retailers don't like digital copies being cheaper. The only option would be going digital only. The tariffs could mean the end of physical media, if you really think about it.
Most of the time they make they digital releases match the store release. It’s something in partnership of Nintendo and retailers as nobody is going to want to want to buy and import your physical game cart for sale in their stores if they are going to be snubbed by digital releases being WAY cheaper.
given how searches for "what is a tarrif" after the election, it probably would have been better for videos about them and their consequences coming out sooner
They should be taught what a tariff is in school, not shown propaganda videos in the lead up to an election. Tarrifs are great. They protect workers. The American worker should not be forced to work at the low wages china workers get paid. The government in China heavily subsidizes these manufacturing plants. It's not a free market at all, it's just an excuse for corporations to outsource jobs and pay far less for labor
@Jonas-tc8qt Every single country has tariffs. They're nothing new and they're nothing scary. They've been used to protect domestic industry for hundreds of years or more.
@@HisCoconutGun yeah sure and because we did it they're great? Lmao. Besides, tariffs like, 20%, 60%, oder more oj every import... Yeah. Great. How to destroy your economy part 1
5:40 While the price of the game will go up, developers won’t be making any more money, meaning that there won’t be any increases in the quality of the games.
Thanks for posting this! I work in logistics and have been following the tariff news very closely. I might share this with my team to help explain to them how complicated the situation is.
4:46 To the general public: Wages have not kept up with annual inflation rates, and the prices of games have not taken into account ease of access and usabilty of tools to make games, or whether or not the game is already fully completed and sold decades before being added back to the firsthand market. A 50 USD SNES game in 1990 not the same as a 121 USD Switch game today.
Not really. Tariffs are technically fully under the purview of Congress, but through some laws, they authorized the president to make some executive decision leeway to impose some levels of tariffs, but Congress can still limit what the President is trying to do.
@@ufailowell I looked it up. Aritcle 1, Section 8, Clasue 3 says congress has the power "To regulate commerce with foreign nations..." There's a Trade Act that gives the President powers in limited situations, but the authority ultimately resides with congress.
@@ufailowell A 52-48 republican majority for the senate does not mean a super-majority. America still voted for a lot of democrats in place. Whether that can hold back Trump's tariffs, am not sure.
We just need to convince Trump to get a Switch 2. "This is a great product, the BEST product even. There's never been a better product ever. I met the guy who made it, great guy, wonderful person, he's a good friend of mine"
A small increase in costs is better than having entire industries leave the country. The Rust Belt used to be THE steel production center of the U.S. and a significant portion of the world, but when tariffs on steel were removes tens of thousands of jobs were lost to international markets and the entire region has been economically depressed since. Also, the majority of other countries DO have these same types of tariffs, but for some reason on the U.S. has to sacrifice its own business for the world.
@@hariman7727 no economic analysis on the use of tariffs to rescue local manufacturing believes the strategy will work. You can slap tariffs on imports all you want, but the labor supply and raw materials in the US alone is woefully insufficient to accommodate present levels of demand for finished goods.
@multi-milliondollarmike5127 we don't update that part of our constitution since the 80's. And the presidents have a history of hate games or think they made children violent
@benfiske1 Correct but also Brazilians don't have too much money for games so piracy took over the country, in that time you could pay 100 Brazilian reais in one Nintendo game or 3 games for 10 Reais for a unlocked playstation 2
They did similar negotiations back in the previous administration and they were able to come to a deal, where Apple got an exception on tariffs if they agreed to bring a percentage of their manufacturing into the US. This could be a solution for Nintendo as well. A manufacturing facility in the US could actually save them money in the long run!
I can’t lie that I’m not worried about what’s going to happen with tariffs, but I am put a bit at ease if tariffs have excluded video games in the past. Thank you for an informative video, as always, though.
You should. We get majority of our goods and services from other countries. You think eggs are ridiculous overpriced now, just wait until they actually implement them
Sharp has manufacturing plants in America for appliances. If they are indeed providing the displays, it would be cool if they starting making displays here.
@@mill2712 unlikely for trump voters has they want only AMERICAN made stuff. no foreigners in US. includes no PlayStation as it is own by Japanese company Sony. they don't want anything be imported to USA if its from other countries such as Mexico despite the company such as John Deere is an American company. they also dont want any US made stuff be exported to those countries. either
What if China decides to conquer Taiwan and nobody can get computer chips anymore? China HAS declared that they want to take over the world, though not in those words.
I’m curious if Nintendo will expand the Nintendo Online classic library to mobile and tablet devices. That way they could still sell subscriptions beyond the Switch platform and further sidestep reliance on console sales.
That is something i could see them considering if their next console doesn't go well, still sends the message that you have to buy a nintendo console to play their recent games and all. That said they'd need a bigger library then they do now to justify the 20/50$ price point without online services and other benefits.
@@EnigmaticGentleman Do they? $4.17 a month for classic games already doesn't seem that extreme to me, while $1.67 a month without the Expansion Pack games sounds more than reasonable.
Don't see how US tariffs would affect other countries, unless said governments also impose increased tariffs. Maybe if there is some sort of "transport thru the US" tariff...
@@RaifSeverence Moving through the states was one of my concerns. The other was that Canadian prices are often set based on US prices. They may want to avoid people buying from canada and setting up a video game smuggling situation.
There is next to zero chance these tariff increases will affect the retail price of any video games or consoles. That being said, yes, Canadian retailers are downstream of Nintendo of America, so every physical game in Canada came from America.
@@michellequinn1940no, Nintendo has its own corporation in Canada like it does in America. It’s Nintendo of Canada that is responsible for distributing selling and promoting games to Canada. Nintendo of America in New York is just for American subsidies/states. And lol if these tariffs are enforced they will more than likely affect video games just as mush as it will affect all our other imports
@@coltenite. @@coltenite. it does, but NOCL is small and still relies on Nintendo's American subsidiary (in Washington, not New York) for import. It's still downstream of an American port. There are always windows and differential enforcement and despite all the people on the internet who think they are macroeconomics experts after reading a couple sentences about tariffs on Wikipedia, tariffs are applied at the export level, not the import. Prices for games might go up due to runaway inflation, but as a practicing economist, I wouldn't go running for your pitchfork just yet.
Every retailer in the UD should add the tariff cost on the price tag, so the consumers would know how much extra they are paying because of the election.
It's interesting to me that they point out prices will be passed along to consumers, as if that wasn't the point. Historically, along with making money, the purpose of tariffs is to encourage people to purchase local instead of foreign goods. The world is a lot different now than when tariffs were last popular, so I suppose there's a lot of uncertainty in what that might look like. I suppose the if you were to take the historical approach, you might hope that Nintendo would switch some manufacturing to the United States. Alternately, you could say the purpose would be that people would purchase less foreign and more domestic entertainment. I.e. more Xbox and less Nintendo. I think even among the Trump base, the idea of not being able to purchase foreign entertainment would not be popular. I know systems of tariffs have always been complicated, not just a matter of X% on everything, so it would be interesting to see how the government would attempt to navigate these things.
Nintendo, just like nearly all electronics companies, has already moved some manufacturing out of China due to how unstable the CCP is. Entertainment is almost always left out of tariffs because there are no immediate replacements. It isn't comparing the price of American apples to Chinese apples.
Must be a bit of a whiplash for Nintendo seeing the incumbent government in Japan go down* and then a week later the US one as well. Two of their biggest markets are in for serious change. New policies and uncertainty just as they try to move into a new era. *Technically Japan has a hung parliament now and Ishiba might limp on for a few more months running basically a caretaker government before calling for another round of elections but there's no way interpreting the results other than a massive repudiation of the LDP.
Thank you for discussing this topic! However, I'm left with a small question. Since Nintendo raising their price for the Switch 2 seems very likely in the United States thanks to these tariffs, do you think that this price increase will reflect in other regions, both distant and close to America? Personally as a Canadian, I anticipate the Switch 2 to have mostly the same price in Japan regardless of tariffs in the US, but I am significantly less certain as for markets like the EU, Australia, and Canada. On the other hand, Nintendo could raise Switch 2's price in Japan (or other markets) if they want to avoid a situation where US consumers travel to Japan just to buy the console at a lower price, which is already happening to a small extent today.
I would expect the international pricing would remain the same, primarily because Nintendo would get the same profit margin no matter where someone buys the console, if anything it would be better for Nintendo if people bought the console in Japan as they wouldn’t need to do currency conversions between USD and Yen. Nintendo would want the price to be most approachable for the widest amount of players while still having a profit margin. If anything it may be a smarter move for Nintendo to at least particularly absorb the cost of the tariffs to prevent a significant price increase as losing the US market can be a bad sign for a console as a lot of the major developers are US based and the US is the largest console video game market next to china. If anything the Switch 2 probably should have released earlier this year so it could get the head start while US market was still in a strong position as it’s the early days of a console that can make or break.
@@johnatkinson1111 I agree that it is reasonable for Nintendo to keep pricing normal in other regions, and your points are true. However I'm still fairly worried about this issue. As a Canadian, I could see a scenario where Nintendo keeps the priced raised in Canada as opposed to the US since having a lower price in Canada would cause backlash among American consumers, possibly to the point of it becoming a culture war issue. And while I think the sentiment of the Switch 2 launch being earlier is fair, I also think that Nintendo would prefer launching the console at a high initial price rather than raising the price midway through the console's lifetime like with the PS5 outside of the US. EDIT: Actually, I'm imagining a scenario where the Switch 2 in the US costs 500 USD, and in Canada costs 500 CAD, and to be honest I think a decent amount of would-be backlash would disappear if it was this way, which is sorta depressing.
It's almost impossible that the tariffs will be applied at a flat rate and for all products. The price of the Switch successor will undoubtedly be higher than the Switch, but it won't be higher due to tariffs.
@@Boulder7685 education i guess... i think the term was invented to discuss the monetary version but over time has started to be used to describe things that have a similar end result
@@philsfill I think modern linguistics have it the right way. If inflation was defined by the government producing more money, the opposite with deflation (at least in the US) would effectively never occur, because the government won’t actually destroy money. Unless I’m misremembering my old econ courses, the Federal Reserve doesn’t force the purchasing of bonds, which suggests that there has to be an incentive to buying them. I can’t imagine that incentive would be anything other than an increased monetary value when selling them back to the government, which would require the production of more money. Which is to say, no one looks at the concept of inflation as a one-way street. But using it to strictly refer to the money supply (in the US) requires that to be the case. It’s like telling someone that calling a common cold they’re suffering from would be more accurately referred to by whatever strain of virus they’re infected by. Yes it could be more accurate, but is it necessary, even in the context of this video? Anyways, sorry if anything came off hostile. Just been following US politics more closely the past few weeks and heard one too many goofballs trying to advocate for the end of fiat currency in defense of the tariffs.
just don't let him play BotW or TotK, we don't need him taking any cues from gannondorf... We still don't know where this timeline's master sword is and last I checked link left the door to the sacred realm locked when he ran off with malon.
I'm struggling to see much forecasting here other than repeating basics on tariffs and a survey of what happened in 2019. Some basic facts you got wrong or did not adequately address. 1. Nintendo cartrdiges are Made in Japan which won't face the 60% tariffs threat on China, and since there's no moving parts, assembly could be shifted to the United States if required. In fact, a recent Manufacturing Engineer job posting by Nintendo of America could point to Nintendo thinking about onshoring certain manufacturing stateside 2. Nintendo has been manufacturing out of Vietnam for half a decade now, it started with Switch Lites, but even the latest OLED models are Vietnam, after the last tariff scare. There is no expectation they manufacture Switch 2 launch units destined for North America from China at this time. 3. Nintendo has had ample time to prepare for a potential Trump administration. Unlike 2016 when it was a surprise, Trump has advertised his plans well in advance and with a close US election forecasted, they would have made contingencies months in advance. (refer to point #1) 4. Alarmo being made in China is irrelevant, it's a low volume low tech toy that continues to make sense as China made product (but perhaps not for long), Not a games console.
He does videos giving context to the market all the time, and none of what you enumerated was a correction to anything in the video, even if how he presented it upset you
@deku812 who cares, pedant? It’s relevant analysis to the industry, the market and Nintendo’s place in it. That’s what people are here for. And it the topic he’s discussing will affect his forecasts
@@deku812"Nintendo Forecast" is really just the channel's name. Not a TV program, if he only did forecasting he wouldn't have released the dev deep dive videos.
Despite the name of the channel, not every video I do is a specific forecast - some are more general research which might be used as the basis for information later (e.g. recently I did a 50+ minute survey of EPD's teams recently which I've referred to but isn't a forecast in itself). In this case, there's nothing in the title or image to suggest I'm going to make a specific forecast. Points 2-4 are covered in the video or your own view (fair, but not "a basic fact"). Point 1 is fair if true but I've seen no definitive evidence on this. The Switch games say "Manufactured in Japan" but this may well include publishing the game software onto pre-made cards of the sort Nintendo has historically sourced out of Taiwan. Very interested to see more detailed evidence.
What is preventing Nintendo from maintaining the Switch 2 at the original intended price and eating the missed revenue because of the tarrifs if it hikes prices of Nintendo Switch Online? Nintendo Switch Online isn't subject to tariffs.
Nothing. The tariffs almost inevitably will not be applied to video games, and Nintendo absolutely will not be changing the launch cost of the Switch successor. They're too stubborn
if the worst comes to pass, america will finally know how it feels to be a third world country where nothing official is ever released and I had to buy from a reseller at a higher price or buy it abroad and bring it back myself
@@davidtitanium22 tariffs are good and protect workers. Stop drinking the bipartisan, neoliberal Kool aid. Both parties agreed to sell out to corporate interests. Trump didn't invent tariffs and you are being manipulated by monied interests to dislike tariffs because of their association to him
The rate of inflation has far surpassed the value of the consumers' own available disposable income. Your projections are, realistically speaking, disingenuous.
I don't know? But I do know that retailers would get pissy at digital sales being cheaper than them (which is fair for their business interests), so I'd imagine if tarrifs were to effect game sales, it would also apply to digital games. If you're on PC, you could probably use official key stores to grab games at the prices available in other countries, I do this from Australia and get games for like $10AUD cheaper which is nice :)
@@tretozodid you set your location to America? I know that one state doesn't have sales tax, and if you didn't use that state as your Nintendo accounts location, you got charged the sales tax of the state you registered in. As such, if Nintendo is now in Brazil, and you got a Brazilian switch, do you still have to pay american taxes?
If you were buying an international digital good, I'd think there might be a tariff. Like buying a Japanese digital edition vs. The localized American one.
The trouble is that people's income has not outpaced inflation, so someone spending $70 in 1996 is not the same as someone spending $140 in 2025.
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Also, the decline of video rental stores. Many consumers would simply only buy games they know they'll cherish (for example, for the N64, stuff like Mario 64, Ocarina of Time, GoldenEye, and Banjo-Kazooie), and rent the rest.
@@RichardHannayYour first post answers your question. The consumers indirectly pay the higher tariff through the increased price. Nintendo is the only one that pays the tariff, but to keep a similar profit for each game, they increase the price. Under basic supply and demand, if the price goes up, demand goes down which hurts Nintendo's gross profit. So the strategy doesn't end by just increasing the price.
@@LastParagon All except Microsoft and Valve as they are established in America. Sony is a gray zone as they are currently an American company with Japanese roots.
@X2011racer If the switch 2 is $400 USD, then it would be approx $500 CAD (because of the exchange). I worry that of it's $500 USD ($400 plus $100 tariff) Nintendo will want to make it $600+ in Canada.
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Most of the consoles are dropped off at Port of Seattle. They aren't going to disrupt a supply chain because it'd be a net loss because people would import the Canadian model.
Not the way tariffs work. Tariffs are price increases on a gubernamental level, but the price increases are not levied on the party selling the products, they are directly on the people buying the product, so while there might be a price increase on USA the same price increase will only affect customers outside the USA if they are buying from resellers. If I were to buy directly from Nintendo or from a Nintendo affiliated shop there wouldn't be a price increase since we are from different countries and held to different policies.
Yeah idk a lot about whats going on when it comes to politics, but if they increase the prices of games again i just wont be getting games anymore. I already dont buy $70 games unless its something i think is REALLY worth it (thats been like 3 games)
But you'll have more industry in the U.S. and alongside lower taxes/less regulations/lowered energy costs you'll be able to afford more. The U.S. dollar will also become stronger, and will be likely to be able to afford more. Anti tariff arguments ignore the long term benefits of Tariffs.
@hariman7727 which is a great thing to hear. Involving myself with politics just makes me depressed and I have enough issue with that as is so I just don't involve myself. What I do care about is what stuff I'm interested in that's gonna be affected by political changes. Hearing that stuff is gonna be cheaper and I'll be able to actually afford stuff is much better than the tiktok brainrotted people pretending like they know everything that's going on and start preaching about how people messed up by voting trump 😮💨 Thank you for being one of the few to have a positive take on the whole tariffs thing.
@@Stargazing_night_sky unfortunately the sunny picture that hairman presented earlier wouldn’t actually make things cheaper. The US cost of labor isn’t anywhere near that to make things cheaper. Not only that but it also takes years to build the manufacturing plants needed to produce things in the US. And less regulations will allow companies to go for greedier money grabs and less consumer protections. Not even existing industries in the US will be safe. Historically, even products made in the US had their prices go up cuz why lower prices when you can just match competitor prices to get a larger profit margin? The US energy market has also been monopolized for decades. Killing green energy subsidies might actually raise the cost of energy. The tariffs will also increase inflation, weakening the US dollar. In fact, I wouldn’t be surprised if hairman here bought into the tariff hype presented by “you know who”. Luckily, these tariffs will probably go away the moment a democratic president is back in office and there is a chance that video games will be successfully negotiated to be exempt from the tariffs yet again. But if you’re just concerned about video games, there are methods you can do to mitigate this now and in the future: The Nintendo voucher program can help mitigate the cost of potential $70-$80 switch games. If you play on PC, let me tell you a little secret I learned during my time trading steam keys: when a game goes on sale on PC, IT WILL ALWAYS ON SALE!* (on the secondhand market) The price of games on key shops typically mirror the lowest historical price the game has ever been on. You can check the lowest price on games and price history on sites like deals.gg with most modern games going for under $20 on average depending on how long it has been on the market and if it had any sales in the past. In fact, the second hand pc gaming market might let you dodge tariffs entirely!
@charmingoracle129 and see? I'm presented with 2 different stories again. I'm just not gonna worry about it because all that's gonna do is make me stressed. But to answer what you said about video games, I can't use voucher codes for switch games because I strictly buy physical games (unless its something $5 or cheaper)
@Stargazing_night_sky if you do ever want to learn about politics, I'd generally recommend not learning from people. people have biases and agendas and generally want you to think how they think. instead its better to read official campaign proposals from both parties and form your own thoughts based on your own values. but if you just wanna ignore the subject cus its stressful that's understandable
Nintendo is familiar with managing Trump's tariff strategies at this point (many of which were kept in place by Biden), so I'm not too worried about price increases. This is, however, a good opportunity to stress that these companies start manufacturing their goods *in* the US for once. Because Trump's proposed tariffs aren't being brought up in a vacuum; they are being used in conjunction with lower taxes, regulations, and costs in order to attract businesses to manufacture their products domestically. It's also worth noting that Nintendo is, at it's core, an international company. It's part of their job to balance out the tariffs of hundreds of different nations.
@@RoboticEdward just because the wealthy saw an easily noticeable decrease in their taxes when Trump cut them, doesn't mean only they got it. If you pay $100 in taxes a pay check, you saw that get cut to $80, whereas someone who pays $10000 saw theirs get cut to $8000. You both got a 20% tax cut, but the wealthy, who by definition pay more in taxes than the poor and middle class, saw a more easily noticeable cut. To say that only the wealthy got a tax cut is dumb.
It's a worst case "scare people away from the long term benefits" argument. Entire INDUSTRIES left the United States due to the LACK of tariffs, utterly devastating areas like the Rust Belt, costing more from the lost business presence in the long term than the short term gains of lower prices from relying on China.
@@hariman7727left because of consumer wanting cheaper option they work in communist countries because they own industries and can fund new factories VC here don't want to risk their capital on a 4 year decision
Certain goods/countries will likely be exempt to tariffs, or have reduced tariffs. It's possible tye consumer could see higher prices, but if Nintendo sees the U.S. as an important market (which it most certainly is) then hopefully they will switch more manufacturing to America (remember Nintendo of America already exists). Might take time but there's no reason American manufacturing would be inable to meet demand with minimal price increase.
@sugar2943 At first for sure, but I think over time you'll see it lower. Obviously you won't have slave wages like overseas, but when parts manufacturing, assembly, and shipping are all local there's a big cost savings there as opposed to sourcing parts and shipping from all over the world. Not to mention Trump is for low business regulation and taxes, which will result in a lot of savings.
@@730indoorsman Japan will also likely be a favored nation. Trump is against them buying our steel industry, but he was still very cozy with Japan and Abe last admin
Worse case scenarios are the hardware and physical carts will be more expensive, which is pretty bad. But at least digital could be a work around as they are not physical product. Here is hoping for some other work arounds.
Well of Microsoft makes a manafacture here they can maybe just maybe make Nintendo and PlayStation here 🤔 so xbox will win on profit not console sales alone
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I think it's only assembled in USA, with stuff like CPUs made in Hungary, China and Vietnam. But you do have a point in terms of manufacturing jobs.
01:22 To refuse to publicly announce a position is a conservative stance, similar to how right-wing conservatives typically refuse to disclose their wages in order to inhibit collective bargaining movements.
Build a factory in the US so it's no longer imported goods. Put a bunch of jokes about tarrifs on the next mario and luigi game like the inflation jokes in superstar saga
Well I be ok if Nintendo goes from $400 to $499 because it Nintendo and portable and home console so two for one price and backwards compatibility is a plus.
Why dont american companies just make better video games than Nintendo? If you don't want people from other countries, why do you want their goods and services? Weird
They do. But they don't have a fiercely loyal and nostalgic audience that will buy their products no matter what. If not foe themselves, but for their children.
Mario-ui9ww American companies did make games and systems. But not better than Nintendo. They were under Atari. Yknow.. The ones who caused the 1984 video game crash. Then there's LJN, Spectrum Holobyte, the list goes on. Never heard of them? Exactly.
@@PipeGuy64Bit only racist dogs hear racist dog whistles. All I'm seeing is another way for the government and activists to push an agenda instead of trying to make the economy better for everyone with lower taxes and less regulations that are unnecessary.
If it's foreign, it will. Tariffs are not about market competition, they're about place of origin (where they're made) If they're made in the country imposing the tariffs, then it won't be subject to them.
they could do that to get around the tariffs, or they could just keep making stuff in china or wherever & just raise the prices of their stuff. manufacturing in the usa is definitely more expensive
That’s not practical. Nintendo’s not going to go out of its way to build its entire infrastructure pipeline here and we don’t have the rights to do it ourselves. Even if the infrastructure was built here, it’d still be _way_ more expensive because of America’s natural resources and fair labor laws.
Also bring on entire industries NOT leaving for other countries and companies placing manufacturing in the U.S. to bypass Tariffs, so there will be more prosperity and happiness. You know, the benefit of Tariffs that ignored by people who make money off of NOT having Tariffs
Trumps whole appeal to his sycophants is that you can just consoooom without guilt or budgeting because he got rid of all the moochers and red tape. He’s cooked if that doesn’t happen
Imagine us loving the fact that our jobs weren't outsourced and the new production plant down the street got people back to work who were struggling to survive, while lower taxes and lower energy costs and less unnecessary business regulations mean that we ACTUALLY CAN AFFORD TO GET LUXURIES. Because a LOT of people can barely afford to live under the Biden/Harris economy, so we're welcoming going back to the first 3 years of the Trump Era where EVERYONE was prospering, small businesses were opening faster than closing, and we could afford to LIVE in general.
@@user-wb8iu1hl6i If it doesn't happen it's because scumbags like Mitch the Snitch Bitch McConnell stabbed the country in the back and prevented anything good for America from happening.
@sharkythegw7843 there is a difference between a prison labor program where an inmate's work will cover a portion of the cost to house and feed the inmate. Yes, I acknowledge that there are times where it becomes abusive in the united states, but to directly compare it to China and other slave labor using countries is a false comparison. However, if you want one of the really nasty examples, Kamala Harris as a district attorney kept black inmates and other inmates beyond their minimum sentence requirements and refused to grant them parole ever so that she could keep people on prison work teams for fighting wildfires.
Factual fun fact: The stock market crash of 1929 actually caused the Great Depression. But the Smoot-Hawley Tariff Act a year later made the conditions worse. HISTORY ROCKS!
@DontKnowDontCare6.9 the market rebounded just like it always does in no time, but the tariffs were just government intervention that was unnecessary, combine that with a new deal and you have a Great Depression
Tariffs on games themselves to that degree would completely doom the physical release market, it would completely the solidify the digital-only future that publishers want.
Note on the increased ratio of physical games sales in Nintendo compared to other consoles: Another huge factor there is storage size. The base Switch has, like, 8 or 16gb? I can't remember. But there are Switch games that are singlehandedly bigger than what one Switch can even download by default.
Base Switch has more than 16GB. Everything I can put on my SD card is on my SD card and Switch from 2017 has 23.7GB available. So it must have been 32GB internal storage with like 6GB probably reserved for the OS. Like it is bad in this day and even back in 2017 to only have 32GB but it's not as quite as bad as remember.
@@zeroshadow-warrior2304 Wow, I was way off then. Still, it seems Witcher 3 and Mortal Kombat 11 are both bigger than 32gb alone, and thats ignoring those 6gb of the OS
@@GameMageVideos yup he's right it's 32gb and the oled has 64gb.
@@GameMageVideos just get a fast/reliable 256 GB storage like mine (sandisk for games) and be happy forever. I barely use half of it (I do prefer physical games for big ones: better prices, unless it is one o those 30% rare sales - also, it is the only way that you actually purchase a game, since digital copies are JUST paid loans).
The Tariffs are on EVERYTHING. Stop worrying about the physical release market and realize that this is what lead to the great depression.
Nintendo dodged the weak yen, only to be hit with tariffs.
no need to dodge the weak yen, because of their huge business overseas in dollars, they can repatriate those dollars for maximum profits in their home country when converted back to Japanese Yen.
Companies like Nintendo and Toyota, and other companies with big overseas business, see higher profits in this scenario.
Do not forget NTDOY vs NTDOJ.
NTDOY ADR stocks are worth 1/4 a NTDOJ share, but are fully American and represent NOA side. Under the same economic conditions from 2016-2020 they got through tariffs by leaning on their American side.
@@matthewcoreyhall nah. The thing is that tariffs are made so products from inside can compete more favourably than other countries' products. They, theoretically, try to compensate for the devaluation from better access to resources or lower human costs. However, no console house makes their consoles on the US, so even Microsoft will suffer the tariffs, and their consumers as well.
@@cyberrb25 I think they were referring more to the weak yen/strong usd than the tariff half of the scenario.
Every usd they receive from their exported products is worth my than every yen they receive from those within their own country.
@Boulder7685 I definitely wouldn't phrase it like that on the second paragraph tho. The issue is that either they have to sell Switch 2 at a markedly higher rate than other countries with similar range (think Switch 2 USD500 in the US/€400 in Europe), or they will get way less money out of each console sold.
Maybe they will still get more out of each console compared to Japan (a friend got his on a trip there for almost half the expected cost in our country), but it will still be a brutal cost on their books, either by lack of sales, or lack of money obtained.
6:11 Adjusting for inflation might make prices comparable to the 1990's. But what is not comparable. Is that the average household had more disposable income in the 90's.
"Shedding light rather than generating heat" that's brilliant ✨
yeah same, so very well said
Call him an LED.
I liked that a lot as well. We Americans could stand to learn a thing or two hundred about that. Not that I'd expect some people here to understand. That would require a will to learn and self awareness as well as questioning your own world views.
I was literally just searching to see if anyone had covered the impact of the US election on the Switch 2, and lo and behold, you have a fresh video on the topic! You are rapidly becoming my favourite Nintendo UA-camr; nowhere else can I find insights into politics and Nintendo news, my two longest standing passions.
People blamed Biden for the inflation, but little did they know it was the cause-and-effect of the previous administration.
It's "Lo and Behold". Lo means "wow".
90$ for a game? Hell no, now imagine how much EVERYTHING else is going to go up considering most of our tech is IMPORTED.
Even the digital eShop releases? There'd be no excuse for these...
Remember that retailers don't like digital copies being cheaper. The only option would be going digital only. The tariffs could mean the end of physical media, if you really think about it.
Most of the time they make they digital releases match the store release. It’s something in partnership of Nintendo and retailers as nobody is going to want to want to buy and import your physical game cart for sale in their stores if they are going to be snubbed by digital releases being WAY cheaper.
And people will sell used for 60 bucks.
@@teamofone1219 As a retrogamer, this is nothing new at all.
given how searches for "what is a tarrif" after the election, it probably would have been better for videos about them and their consequences coming out sooner
They should be taught what a tariff is in school, not shown propaganda videos in the lead up to an election. Tarrifs are great. They protect workers. The American worker should not be forced to work at the low wages china workers get paid. The government in China heavily subsidizes these manufacturing plants. It's not a free market at all, it's just an excuse for corporations to outsource jobs and pay far less for labor
@@robbyrobot3303 yeah... You'll See that tariffs just drive prices up.
Sure, they protect certain sectors, but at what price?
Tariffs and basic economics were taught in middle school. The problem is comprehension and attention of students are low.
@Jonas-tc8qt Every single country has tariffs. They're nothing new and they're nothing scary. They've been used to protect domestic industry for hundreds of years or more.
@@HisCoconutGun yeah sure and because we did it they're great? Lmao.
Besides, tariffs like, 20%, 60%, oder more oj every import... Yeah. Great. How to destroy your economy part 1
5:40 While the price of the game will go up, developers won’t be making any more money, meaning that there won’t be any increases in the quality of the games.
Thanks for posting this! I work in logistics and have been following the tariff news very closely. I might share this with my team to help explain to them how complicated the situation is.
That is very interesting, would you mind to share how the tariff issue is affecting your work? Ofc if you're comfortable.
4:46
To the general public:
Wages have not kept up with annual inflation rates, and the prices of games have not taken into account ease of access and usabilty of tools to make games, or whether or not the game is already fully completed and sold decades before being added back to the firsthand market.
A 50 USD SNES game in 1990 not the same as a 121 USD Switch game today.
In the US tariffs are almost completely controlled by the president. It’s one of the few things the president has direct control over
Not really.
Tariffs are technically fully under the purview of Congress, but through some laws, they authorized the president to make some executive decision leeway to impose some levels of tariffs, but Congress can still limit what the President is trying to do.
@@chbukimy understanding that it is the president’s purview but even if it was congress they all are trump stans now
@@ufailowell I looked it up. Aritcle 1, Section 8, Clasue 3 says congress has the power "To regulate commerce with foreign nations..." There's a Trade Act that gives the President powers in limited situations, but the authority ultimately resides with congress.
@@ufailowell A 52-48 republican majority for the senate does not mean a super-majority. America still voted for a lot of democrats in place. Whether that can hold back Trump's tariffs, am not sure.
@@ChickenShred 53-47 unfortunately, Casey is almost certainly going to lose. Also looking at a small GOP House majority, likely 220-215 or 221-214.
We just need to convince Trump to get a Switch 2.
"This is a great product, the BEST product even. There's never been a better product ever. I met the guy who made it, great guy, wonderful person, he's a good friend of mine"
And it's no longer manufactured in Chiiiina.
Tremendous!
Barron will probably get one and his grandkids will get like 40.
*ugly smug smile* 👍 👍
Playing Nintendo games is easy, And when you play those games they let you do it. You can do anything, just grab em' by the cartridge.
I was wondering how the election would impact nintendo
*(i REALLY hope it does, they had it coming)*
@@Giggles_iJest you do realize if it affects Nintendo, it affects other Japanese publishers as well, right?
@@corrinflakes9659giggles here is probably just a troll salty because 'games are woke now'
@@dlfon99 Nah i just want someone to slap some sense into nintendo with their archaic ways in court over the *stupidest* things
@@Giggles_iJest Your mom's got to be miserable knowing her child is this much of a loozer. 🤡
This is a very even-handed discussion of tariffs that I think would’ve benefited people pre-election. All the same, thanks for the interesting video.
Hello from Vietnam! We are waiting for the go ahead to begin production in Quang Ninh
do they have ninjas in vietnam?
bro is locked in and ready to start making switches 😂
Thanks for the Nintendo community update :)
What is the maximum capacity of the factory you work in?
@@ekurisona663No, they’re in Spokane.
Costs for consumers will almost certainly go up. It’s just a question of how much.
"consumers"
“humans”
its looking to be upwards of 30-50%
A small increase in costs is better than having entire industries leave the country.
The Rust Belt used to be THE steel production center of the U.S. and a significant portion of the world, but when tariffs on steel were removes tens of thousands of jobs were lost to international markets and the entire region has been economically depressed since.
Also, the majority of other countries DO have these same types of tariffs, but for some reason on the U.S. has to sacrifice its own business for the world.
@@hariman7727 no economic analysis on the use of tariffs to rescue local manufacturing believes the strategy will work. You can slap tariffs on imports all you want, but the labor supply and raw materials in the US alone is woefully insufficient to accommodate present levels of demand for finished goods.
I am reliably impressed by the quality and professional nature of discourse on this channel.
Here in Brazil we have 70 to 80% tariff on games since they are considered the same as a cassino 's slot machine game
No wonder they are so expensive there.
It makes some sense for games with loot boxes, but for all games in general is crazy.
@multi-milliondollarmike5127 we don't update that part of our constitution since the 80's. And the presidents have a history of hate games or think they made children violent
And that's why Nintendo left Brazil
@benfiske1 Correct but also Brazilians don't have too much money for games so piracy took over the country, in that time you could pay 100 Brazilian reais in one Nintendo game or 3 games for 10 Reais for a unlocked playstation 2
Good job America. Prices on stuff will go up dramatically.
People forget how cheap it is to ACTUALLY MANUFACTURE cartridges and discs now, only the manufacturing price would be impacted by the tariffs.
i wonder how Apple will navigate this seeing as to how theyre one of our largest and most influential companies besides Nvidia.
They did similar negotiations back in the previous administration and they were able to come to a deal, where Apple got an exception on tariffs if they agreed to bring a percentage of their manufacturing into the US. This could be a solution for Nintendo as well. A manufacturing facility in the US could actually save them money in the long run!
Unironically my two favorite interests: economics and Nintendo 😂
You'll love Mario Party then
Try Animal Crossing. It has trade, economy and even a stalk (not a typo) market.
I wonder what the incells that voted for Trump think about his new tariffs affecting games BIG TIME
they’re definitely not getting laid now lol
Lmao I been waiting for this. Screw u Nintendo
They're mainly PC gamers who buy digitally lol
Trump doesn't have a strong record of actually implementing tariffs. He uses them as a bargaining tool to get better trade deals.
I can’t lie that I’m not worried about what’s going to happen with tariffs, but I am put a bit at ease if tariffs have excluded video games in the past.
Thank you for an informative video, as always, though.
You should. We get majority of our goods and services from other countries. You think eggs are ridiculous overpriced now, just wait until they actually implement them
@@URFTBOUND4LIFEBit of friendly advice- if someone says something worries them, maybe don’t try and make their worry worse.
You said that you weren't worried? @@wootmasterzorsx
@@URFTBOUND4LIFEit's to have a 20% tariff across all imported goods. That would make your $60 game cost closer to $75.
may need to check your game console on where it was manufacture. currently. the switch is manufacture from Vietnam (use to be China until tariffs)
The consumer will pay for it. It is what it is. The competition will do the same.
That's not how tariffs work, dipshit!
Sharp has manufacturing plants in America for appliances. If they are indeed providing the displays, it would be cool if they starting making displays here.
this is BS.. just sounds like you voted for the orange cheeto
I am thinking that perhaps it would be a great idea for Nintendo to open a factory or two here. May help with the tarrif issue.
@@mill2712 unlikely for trump voters has they want only AMERICAN made stuff. no foreigners in US. includes no PlayStation as it is own by Japanese company Sony. they don't want anything be imported to USA if its from other countries such as Mexico despite the company such as John Deere is an American company. they also dont want any US made stuff be exported to those countries. either
NF, can you put up a poll on your YT Community tab? I would love to see what your subscribers believe the price will be.
A. $399
B. $449
C. $499
What if China decides to conquer Taiwan and nobody can get computer chips anymore?
China HAS declared that they want to take over the world, though not in those words.
$549
$999
I’m curious if Nintendo will expand the Nintendo Online classic library to mobile and tablet devices. That way they could still sell subscriptions beyond the Switch platform and further sidestep reliance on console sales.
That is something i could see them considering if their next console doesn't go well, still sends the message that you have to buy a nintendo console to play their recent games and all. That said they'd need a bigger library then they do now to justify the 20/50$ price point without online services and other benefits.
@@EnigmaticGentleman Do they? $4.17 a month for classic games already doesn't seem that extreme to me, while $1.67 a month without the Expansion Pack games sounds more than reasonable.
That sounds like a great idea!
@@andrescube64 sounds like your not a gamer
sounds like your not a gamer
"Stifle innovation in our industry" now eh?
Do you think there would be any impact on Canada from the US tariffs messing with imports or keeping prices generally in line with America?
Don't see how US tariffs would affect other countries, unless said governments also impose increased tariffs.
Maybe if there is some sort of "transport thru the US" tariff...
@@RaifSeverence Moving through the states was one of my concerns. The other was that Canadian prices are often set based on US prices. They may want to avoid people buying from canada and setting up a video game smuggling situation.
There is next to zero chance these tariff increases will affect the retail price of any video games or consoles.
That being said, yes, Canadian retailers are downstream of Nintendo of America, so every physical game in Canada came from America.
@@michellequinn1940no, Nintendo has its own corporation in Canada like it does in America. It’s Nintendo of Canada that is responsible for distributing selling and promoting games to Canada. Nintendo of America in New York is just for American subsidies/states. And lol if these tariffs are enforced they will more than likely affect video games just as mush as it will affect all our other imports
@@coltenite. @@coltenite. it does, but NOCL is small and still relies on Nintendo's American subsidiary (in Washington, not New York) for import. It's still downstream of an American port.
There are always windows and differential enforcement and despite all the people on the internet who think they are macroeconomics experts after reading a couple sentences about tariffs on Wikipedia, tariffs are applied at the export level, not the import. Prices for games might go up due to runaway inflation, but as a practicing economist, I wouldn't go running for your pitchfork just yet.
I was hoping you were going to make a video on this topic.
Pfp says otherwise
Every retailer in the UD should add the tariff cost on the price tag, so the consumers would know how much extra they are paying because of the election.
It's interesting to me that they point out prices will be passed along to consumers, as if that wasn't the point. Historically, along with making money, the purpose of tariffs is to encourage people to purchase local instead of foreign goods. The world is a lot different now than when tariffs were last popular, so I suppose there's a lot of uncertainty in what that might look like.
I suppose the if you were to take the historical approach, you might hope that Nintendo would switch some manufacturing to the United States. Alternately, you could say the purpose would be that people would purchase less foreign and more domestic entertainment. I.e. more Xbox and less Nintendo. I think even among the Trump base, the idea of not being able to purchase foreign entertainment would not be popular.
I know systems of tariffs have always been complicated, not just a matter of X% on everything, so it would be interesting to see how the government would attempt to navigate these things.
Nintendo, just like nearly all electronics companies, has already moved some manufacturing out of China due to how unstable the CCP is.
Entertainment is almost always left out of tariffs because there are no immediate replacements. It isn't comparing the price of American apples to Chinese apples.
Must be a bit of a whiplash for Nintendo seeing the incumbent government in Japan go down* and then a week later the US one as well. Two of their biggest markets are in for serious change. New policies and uncertainty just as they try to move into a new era.
*Technically Japan has a hung parliament now and Ishiba might limp on for a few more months running basically a caretaker government before calling for another round of elections but there's no way interpreting the results other than a massive repudiation of the LDP.
Thank you for discussing this topic! However, I'm left with a small question. Since Nintendo raising their price for the Switch 2 seems very likely in the United States thanks to these tariffs, do you think that this price increase will reflect in other regions, both distant and close to America? Personally as a Canadian, I anticipate the Switch 2 to have mostly the same price in Japan regardless of tariffs in the US, but I am significantly less certain as for markets like the EU, Australia, and Canada. On the other hand, Nintendo could raise Switch 2's price in Japan (or other markets) if they want to avoid a situation where US consumers travel to Japan just to buy the console at a lower price, which is already happening to a small extent today.
I would expect the international pricing would remain the same, primarily because Nintendo would get the same profit margin no matter where someone buys the console, if anything it would be better for Nintendo if people bought the console in Japan as they wouldn’t need to do currency conversions between USD and Yen. Nintendo would want the price to be most approachable for the widest amount of players while still having a profit margin. If anything it may be a smarter move for Nintendo to at least particularly absorb the cost of the tariffs to prevent a significant price increase as losing the US market can be a bad sign for a console as a lot of the major developers are US based and the US is the largest console video game market next to china.
If anything the Switch 2 probably should have released earlier this year so it could get the head start while US market was still in a strong position as it’s the early days of a console that can make or break.
@@johnatkinson1111 I agree that it is reasonable for Nintendo to keep pricing normal in other regions, and your points are true. However I'm still fairly worried about this issue. As a Canadian, I could see a scenario where Nintendo keeps the priced raised in Canada as opposed to the US since having a lower price in Canada would cause backlash among American consumers, possibly to the point of it becoming a culture war issue.
And while I think the sentiment of the Switch 2 launch being earlier is fair, I also think that Nintendo would prefer launching the console at a high initial price rather than raising the price midway through the console's lifetime like with the PS5 outside of the US.
EDIT: Actually, I'm imagining a scenario where the Switch 2 in the US costs 500 USD, and in Canada costs 500 CAD, and to be honest I think a decent amount of would-be backlash would disappear if it was this way, which is sorta depressing.
It's almost impossible that the tariffs will be applied at a flat rate and for all products. The price of the Switch successor will undoubtedly be higher than the Switch, but it won't be higher due to tariffs.
i usually think of money supply when i hear "inflation" so i think it would be more accurate to call it "price inflation" here
Is this an econ education thing, or a defending gold-backed currency thing?
@@Boulder7685 education i guess... i think the term was invented to discuss the monetary version but over time has started to be used to describe things that have a similar end result
@@philsfill I think modern linguistics have it the right way. If inflation was defined by the government producing more money, the opposite with deflation (at least in the US) would effectively never occur, because the government won’t actually destroy money.
Unless I’m misremembering my old econ courses, the Federal Reserve doesn’t force the purchasing of bonds, which suggests that there has to be an incentive to buying them. I can’t imagine that incentive would be anything other than an increased monetary value when selling them back to the government, which would require the production of more money.
Which is to say, no one looks at the concept of inflation as a one-way street. But using it to strictly refer to the money supply (in the US) requires that to be the case.
It’s like telling someone that calling a common cold they’re suffering from would be more accurately referred to by whatever strain of virus they’re infected by. Yes it could be more accurate, but is it necessary, even in the context of this video?
Anyways, sorry if anything came off hostile. Just been following US politics more closely the past few weeks and heard one too many goofballs trying to advocate for the end of fiat currency in defense of the tariffs.
Money supply and inflation are not the same thing. Money supply can affect inflation, but a bigger affect is from corporate profits.
"price inflation" is inflation. Money supply is a separate but sometimes related thing.
Trump: little Johnny, will be okay with a US made GI Joe vs a console not AMERICAN made. I grew up just fine.
Someone needs to buy trump a Switch with Mario Party
Democratic party ❌
Republican party ❌
Mario party ✅
@JohnLattanzio98 facts
“Joe, if you use that double-dice block, I’ll drone strike you so help me god.”
@@spencermaley4390 hahaha
just don't let him play BotW or TotK, we don't need him taking any cues from gannondorf... We still don't know where this timeline's master sword is and last I checked link left the door to the sacred realm locked when he ran off with malon.
I'm struggling to see much forecasting here other than repeating basics on tariffs and a survey of what happened in 2019.
Some basic facts you got wrong or did not adequately address.
1. Nintendo cartrdiges are Made in Japan which won't face the 60% tariffs threat on China, and since there's no moving parts, assembly could be shifted to the United States if required. In fact, a recent Manufacturing Engineer job posting by Nintendo of America could point to Nintendo thinking about onshoring certain manufacturing stateside
2. Nintendo has been manufacturing out of Vietnam for half a decade now, it started with Switch Lites, but even the latest OLED models are Vietnam, after the last tariff scare. There is no expectation they manufacture Switch 2 launch units destined for North America from China at this time.
3. Nintendo has had ample time to prepare for a potential Trump administration. Unlike 2016 when it was a surprise, Trump has advertised his plans well in advance and with a close US election forecasted, they would have made contingencies months in advance. (refer to point #1)
4. Alarmo being made in China is irrelevant, it's a low volume low tech toy that continues to make sense as China made product (but perhaps not for long), Not a games console.
He does videos giving context to the market all the time, and none of what you enumerated was a correction to anything in the video, even if how he presented it upset you
@@keyblader6 it's not even a forecast is my point.
@deku812 who cares, pedant? It’s relevant analysis to the industry, the market and Nintendo’s place in it. That’s what people are here for. And it the topic he’s discussing will affect his forecasts
@@deku812"Nintendo Forecast" is really just the channel's name. Not a TV program, if he only did forecasting he wouldn't have released the dev deep dive videos.
Despite the name of the channel, not every video I do is a specific forecast - some are more general research which might be used as the basis for information later (e.g. recently I did a 50+ minute survey of EPD's teams recently which I've referred to but isn't a forecast in itself). In this case, there's nothing in the title or image to suggest I'm going to make a specific forecast. Points 2-4 are covered in the video or your own view (fair, but not "a basic fact"). Point 1 is fair if true but I've seen no definitive evidence on this. The Switch games say "Manufactured in Japan" but this may well include publishing the game software onto pre-made cards of the sort Nintendo has historically sourced out of Taiwan. Very interested to see more detailed evidence.
What is preventing Nintendo from maintaining the Switch 2 at the original intended price and eating the missed revenue because of the tarrifs if it hikes prices of Nintendo Switch Online? Nintendo Switch Online isn't subject to tariffs.
Nothing. The tariffs almost inevitably will not be applied to video games, and Nintendo absolutely will not be changing the launch cost of the Switch successor. They're too stubborn
What is keeping them? Uh lost profits. That would be a huge loss to them. Over 40% of their profits come from console sales
When the debt is $40,000,000,000,000 and directly raising taxes is considered bad by voters.
Talking Trumps Tarif with Mario Golf 😂 brilliant, I hope that was intentional. 👏
if the worst comes to pass, america will finally know how it feels to be a third world country where nothing official is ever released and I had to buy from a reseller at a higher price or buy it abroad and bring it back myself
America already feels like a third world country outside cities like NYC lol
thats not happening lil bro. dont get your hopes up. Leaving the US market is the least likely outcome for anyone impacted. 😂
@@FerororOther way aroumd its big cities that feel like 3rd world nations 🤣
@@davidtitanium22 tariffs are good and protect workers. Stop drinking the bipartisan, neoliberal Kool aid. Both parties agreed to sell out to corporate interests. Trump didn't invent tariffs and you are being manipulated by monied interests to dislike tariffs because of their association to him
i hope nothing but the worst for the people who voted for that felon
Non-American here, I would like to thank the 70ish million voters for increase availability of consumer products globally.
The rate of inflation has far surpassed the value of the consumers' own available disposable income. Your projections are, realistically speaking, disingenuous.
💯
can you please add the sources you used in the description? This is handy information, and I want to read more into it myself.
Done :)
Can you tariff digital sales? Like theres no necessarily 'entering the country'
I don't know? But I do know that retailers would get pissy at digital sales being cheaper than them (which is fair for their business interests), so I'd imagine if tarrifs were to effect game sales, it would also apply to digital games.
If you're on PC, you could probably use official key stores to grab games at the prices available in other countries, I do this from Australia and get games for like $10AUD cheaper which is nice :)
Yes. Nintendo isn't in Brazil at Switch's launch. I bought my in 2018 and had to paid Americans taxes to use Eshop.
@@tretozodid you set your location to America? I know that one state doesn't have sales tax, and if you didn't use that state as your Nintendo accounts location, you got charged the sales tax of the state you registered in.
As such, if Nintendo is now in Brazil, and you got a Brazilian switch, do you still have to pay american taxes?
If you were buying an international digital good, I'd think there might be a tariff.
Like buying a Japanese digital edition vs. The localized American one.
Tariffs are an import tax. It wouldn't apply to digital goods because it's done over the internet.
The trouble is that people's income has not outpaced inflation, so someone spending $70 in 1996 is not the same as someone spending $140 in 2025.
Also, the decline of video rental stores. Many consumers would simply only buy games they know they'll cherish (for example, for the N64, stuff like Mario 64, Ocarina of Time, GoldenEye, and Banjo-Kazooie), and rent the rest.
Step 1: increase prices to cover the tariff. End of strategy.
That doesn't make sense... the consumers cover for the tarriffs, not Nintendo.
@@RichardHannay The consumers pay the tariff in the form of higher prices. So all Nintendo and the other console manufacturers will increase prices.
Yes, so how does Nintendo increasing prices gonna cover the tariffs consumers will pay?
@@RichardHannayYour first post answers your question. The consumers indirectly pay the higher tariff through the increased price. Nintendo is the only one that pays the tariff, but to keep a similar profit for each game, they increase the price.
Under basic supply and demand, if the price goes up, demand goes down which hurts Nintendo's gross profit. So the strategy doesn't end by just increasing the price.
@@LastParagon All except Microsoft and Valve as they are established in America.
Sony is a gray zone as they are currently an American company with Japanese roots.
Any idea how this might impact Canada?
I can't see them pricing the new switch lower than the US price, even if the reason is due to tariffs.
Canada gets all their Nintendo products from the US, but fear not, prices on games will not increase for either of us.
Canada isn't the one enforcing Trump's tariffs, so it's good, I think.
@X2011racer
If the switch 2 is $400 USD, then it would be approx $500 CAD (because of the exchange).
I worry that of it's $500 USD ($400 plus $100 tariff) Nintendo will want to make it $600+ in Canada.
Most of the consoles are dropped off at Port of Seattle. They aren't going to disrupt a supply chain because it'd be a net loss because people would import the Canadian model.
Meanwhile me on Mexico just chilling.
The price will increase for all the regions because most console sales are done in America.
Not the way tariffs work.
Tariffs are price increases on a gubernamental level, but the price increases are not levied on the party selling the products, they are directly on the people buying the product, so while there might be a price increase on USA the same price increase will only affect customers outside the USA if they are buying from resellers.
If I were to buy directly from Nintendo or from a Nintendo affiliated shop there wouldn't be a price increase since we are from different countries and held to different policies.
Yeah idk a lot about whats going on when it comes to politics, but if they increase the prices of games again i just wont be getting games anymore. I already dont buy $70 games unless its something i think is REALLY worth it (thats been like 3 games)
But you'll have more industry in the U.S. and alongside lower taxes/less regulations/lowered energy costs you'll be able to afford more.
The U.S. dollar will also become stronger, and will be likely to be able to afford more.
Anti tariff arguments ignore the long term benefits of Tariffs.
@hariman7727 which is a great thing to hear. Involving myself with politics just makes me depressed and I have enough issue with that as is so I just don't involve myself. What I do care about is what stuff I'm interested in that's gonna be affected by political changes. Hearing that stuff is gonna be cheaper and I'll be able to actually afford stuff is much better than the tiktok brainrotted people pretending like they know everything that's going on and start preaching about how people messed up by voting trump 😮💨
Thank you for being one of the few to have a positive take on the whole tariffs thing.
@@Stargazing_night_sky unfortunately the sunny picture that hairman presented earlier wouldn’t actually make things cheaper. The US cost of labor isn’t anywhere near that to make things cheaper. Not only that but it also takes years to build the manufacturing plants needed to produce things in the US. And less regulations will allow companies to go for greedier money grabs and less consumer protections.
Not even existing industries in the US will be safe. Historically, even products made in the US had their prices go up cuz why lower prices when you can just match competitor prices to get a larger profit margin? The US energy market has also been monopolized for decades. Killing green energy subsidies might actually raise the cost of energy. The tariffs will also increase inflation, weakening the US dollar. In fact, I wouldn’t be surprised if hairman here bought into the tariff hype presented by “you know who”.
Luckily, these tariffs will probably go away the moment a democratic president is back in office and there is a chance that video games will be successfully negotiated to be exempt from the tariffs yet again. But if you’re just concerned about video games, there are methods you can do to mitigate this now and in the future:
The Nintendo voucher program can help mitigate the cost of potential $70-$80 switch games.
If you play on PC, let me tell you a little secret I learned during my time trading steam keys: when a game goes on sale on PC, IT WILL ALWAYS ON SALE!* (on the secondhand market) The price of games on key shops typically mirror the lowest historical price the game has ever been on. You can check the lowest price on games and price history on sites like deals.gg with most modern games going for under $20 on average depending on how long it has been on the market and if it had any sales in the past. In fact, the second hand pc gaming market might let you dodge tariffs entirely!
@charmingoracle129 and see? I'm presented with 2 different stories again. I'm just not gonna worry about it because all that's gonna do is make me stressed. But to answer what you said about video games, I can't use voucher codes for switch games because I strictly buy physical games (unless its something $5 or cheaper)
@Stargazing_night_sky if you do ever want to learn about politics, I'd generally recommend not learning from people. people have biases and agendas and generally want you to think how they think. instead its better to read official campaign proposals from both parties and form your own thoughts based on your own values. but if you just wanna ignore the subject cus its stressful that's understandable
How expensive do you predict the switch 2 to be if it weren’t for the tariffs?
About $599 US Dollars without tariffs, $750-$800 under Trump.
So does this mean the switch 2 could be $800? This is concerning cuz gaming could fundamentally get worse in the next 5 years?
I'm only here to... "Ask Iwata" what he thinks
Let's get that ouija board ready!
Trump voters brought this upon themselves.
We didn't all vote for him
Simple fact, tariff instigates lobbying. In other words, bribes.
Thus DJT gets richer while everyone needs to pay more.
It would be nice if Nintendo manufactured a majority/ if not all of their products in Japan.
We just have to hope this isn't a war on gamers.
I think gamers been in internal wars for way longer lol
Let's be franc,no serious economist think tarrifs are a good idea.
Like who? Tariffs are imposed on goods the world over currently. You think they aren't? You are wrong.
I can barely afford to buy games in the US as is 😒 Good thing Weekly payment apps exist cus Id be struggling with any purchases in general
as if games becoming $70 wasn't bad enough.
Games were $70 back in the mid-90s, ironically.
at least the economy was better then
@@aneeshsrinivas Well, and to be fair, there were alternatives to ownership, like video rental stores and whatever the SEGA Channel was...
yeah, and i bet the $70 price tag only went for the n64 and its cartridges. i believe the ps1 and saturn
was cheaper.
Gotta love how the "tax the rich" crowd in the comments are not so fond of the idea anymore.
Tell me you don't understand what tax the rich means without telling me you don't understand tax the rich means.
Now xbox doesn’t seem like a bad choice right now for gaming.
It's not Nintendo's fault this time.
Nintendo is familiar with managing Trump's tariff strategies at this point (many of which were kept in place by Biden), so I'm not too worried about price increases.
This is, however, a good opportunity to stress that these companies start manufacturing their goods *in* the US for once. Because Trump's proposed tariffs aren't being brought up in a vacuum; they are being used in conjunction with lower taxes, regulations, and costs in order to attract businesses to manufacture their products domestically.
It's also worth noting that Nintendo is, at it's core, an international company. It's part of their job to balance out the tariffs of hundreds of different nations.
*lower taxes for the wealthy
@@RoboticEdward *No income tax at all.
@@RoboticEdward just because the wealthy saw an easily noticeable decrease in their taxes when Trump cut them, doesn't mean only they got it. If you pay $100 in taxes a pay check, you saw that get cut to $80, whereas someone who pays $10000 saw theirs get cut to $8000. You both got a 20% tax cut, but the wealthy, who by definition pay more in taxes than the poor and middle class, saw a more easily noticeable cut. To say that only the wealthy got a tax cut is dumb.
I doubt my request is what convinced you to make this (you probably didn't even see it) but dang that was fast
To clarify I made a comment a few weeks ago suggesting this as a video idea
Edifying video & channel.
Get ready to pay more for switch games 😢
299 to 499 is a massive jump wow
It's a worst case "scare people away from the long term benefits" argument.
Entire INDUSTRIES left the United States due to the LACK of tariffs, utterly devastating areas like the Rust Belt, costing more from the lost business presence in the long term than the short term gains of lower prices from relying on China.
@@hariman7727left because of consumer wanting cheaper option they work in communist countries because they own industries and can fund new factories VC here don't want to risk their capital on a 4 year decision
China cares more about app games cause gacha makes more money. It’s a weak comparison with console vs app.
Does Nintendo release the switch 2 before 2026?
We becoming Sale gamers now
I know you aren't trying to prosele
Im sorry, did he just say self-identified military otaku?
He's an OC with issues, please don't steal.
Guess pirating games is gonna have a new meaning.
Certain goods/countries will likely be exempt to tariffs, or have reduced tariffs. It's possible tye consumer could see higher prices, but if Nintendo sees the U.S. as an important market (which it most certainly is) then hopefully they will switch more manufacturing to America (remember Nintendo of America already exists). Might take time but there's no reason American manufacturing would be inable to meet demand with minimal price increase.
Plant costs too much and labor costs are high they'll still be more expensive than from other countries without the tariffs
@sugar2943 At first for sure, but I think over time you'll see it lower. Obviously you won't have slave wages like overseas, but when parts manufacturing, assembly, and shipping are all local there's a big cost savings there as opposed to sourcing parts and shipping from all over the world.
Not to mention Trump is for low business regulation and taxes, which will result in a lot of savings.
@@730indoorsman Japan will also likely be a favored nation. Trump is against them buying our steel industry, but he was still very cozy with Japan and Abe last admin
Classic Sintendo L.
Just buy Xbox in USA 🤔
Worse case scenarios are the hardware and physical carts will be more expensive, which is pretty bad. But at least digital could be a work around as they are not physical product. Here is hoping for some other work arounds.
The hardware and software will be more expensive anyways regardless of who’s the next president
That's why I recently bought a new controller a copy of Luigi's Mansion 3 before these tariffs hit in 2025
Well of Microsoft makes a manafacture here they can maybe just maybe make Nintendo and PlayStation here 🤔 so xbox will win on profit not console sales alone
I think it's only assembled in USA, with stuff like CPUs made in Hungary, China and Vietnam. But you do have a point in terms of manufacturing jobs.
My Zelda Switch Lite is made in Cambodia
Interesting! Thank you.
I feel like Vietnam and Cambodia are the future of NoA, at least until the trade war ends.
01:22 To refuse to publicly announce a position is a conservative stance, similar to how right-wing conservatives typically refuse to disclose their wages in order to inhibit collective bargaining movements.
Dang this presidency isn’t beneficial to literally anyone.
Build a factory in the US so it's no longer imported goods. Put a bunch of jokes about tarrifs on the next mario and luigi game like the inflation jokes in superstar saga
Price would still go up massively if we produced here.
@@ThatBunniBoiespecially without the immigrants, double homicide, no cheap labor and tariffs obligating internal production 🎉
Nintendo isn't Chinese.... why would you mention that when it has no relationship?
2:44 - No. This is not true. There's literally no point in doing this, as it doesn't help or hurt the US either way.
Well I be ok if Nintendo goes from $400 to $499 because it Nintendo and portable and home console so two for one price and backwards compatibility is a plus.
Why dont american companies just make better video games than Nintendo? If you don't want people from other countries, why do you want their goods and services? Weird
They do. But they don't have a fiercely loyal and nostalgic audience that will buy their products no matter what. If not foe themselves, but for their children.
DEI corruption.
Mario-ui9ww
American companies did make games and systems. But not better than Nintendo.
They were under Atari. Yknow.. The ones who caused the 1984 video game crash.
Then there's LJN, Spectrum Holobyte, the list goes on. Never heard of them?
Exactly.
@@hariman7727 Enough with the racist dog whistle
@@PipeGuy64Bit only racist dogs hear racist dog whistles.
All I'm seeing is another way for the government and activists to push an agenda instead of trying to make the economy better for everyone with lower taxes and less regulations that are unnecessary.
I hope terrifs don't affect uniqie products with no competition.
They will due to compounding effects on supply chains.
If it's foreign, it will.
Tariffs are not about market competition, they're about place of origin (where they're made)
If they're made in the country imposing the tariffs, then it won't be subject to them.
I kinda wonder if they might consider building a factory in the USA.
That's the whole end goal of the tariffs.
they could do that to get around the tariffs, or they could just keep making stuff in china or wherever & just raise the prices of their stuff. manufacturing in the usa is definitely more expensive
Getting political for a sec- for all ye who were fooled, here’s proof of one of the many lies of he who shall not be named……
Let’s name him: Donald Trump. People do know that tariffs actively cost the consumer more, right? Right???
@@evanfields6478sadly, they don’t apparently:/
here is idea. MADE IN AMERICA; SWITCH 2
That’s not practical. Nintendo’s not going to go out of its way to build its entire infrastructure pipeline here and we don’t have the rights to do it ourselves. Even if the infrastructure was built here, it’d still be _way_ more expensive because of America’s natural resources and fair labor laws.
Why would a japanese company benefit the americans if they cant make things cheaper than china?
Who’s ready for 80 dollar games?
Fans of Triple A$$ games from EA, Bethesda and UBIsoft of course.
As someone who lived in the 80s, 80 dollar games ain't anything new
You're off the mark. It's gonna be $95 for foreign developed/published games, $80 for domestic developed/published games.
Bring on the tariffs and high prices! They voted for it 👻
We voted for other factors, like no tax on tips, not for high prices
@@JohnLattanzio98 what did yall think tariffs do 😂😂😂
You voted for Inflation for past 4 years, what are you yapping about?
@@QuantumChrist I did NOT vote for inflation
Also bring on entire industries NOT leaving for other countries and companies placing manufacturing in the U.S. to bypass Tariffs, so there will be more prosperity and happiness.
You know, the benefit of Tariffs that ignored by people who make money off of NOT having Tariffs
500 dollar switch LETS GO
Imagine normies despising Trump because they can’t afford Nintendo‘s new machine. 😂
Its as simple as that with normies
Trumps whole appeal to his sycophants is that you can just consoooom without guilt or budgeting because he got rid of all the moochers and red tape. He’s cooked if that doesn’t happen
Imagine us loving the fact that our jobs weren't outsourced and the new production plant down the street got people back to work who were struggling to survive, while lower taxes and lower energy costs and less unnecessary business regulations mean that we ACTUALLY CAN AFFORD TO GET LUXURIES.
Because a LOT of people can barely afford to live under the Biden/Harris economy, so we're welcoming going back to the first 3 years of the Trump Era where EVERYONE was prospering, small businesses were opening faster than closing, and we could afford to LIVE in general.
@@user-wb8iu1hl6i If it doesn't happen it's because scumbags like Mitch the Snitch Bitch McConnell stabbed the country in the back and prevented anything good for America from happening.
@@hariman7727and Trump is also responsible for printing more money than ever to bring the long term effect called inflation
Why are they using slave and indentured servitude labor?
How about they don't use that
China doesn't care about its people, they only care that The State continues.
Us is trying to do that with prisoners
Look up "US prison labor".
The US does that too...
@sharkythegw7843 there is a difference between a prison labor program where an inmate's work will cover a portion of the cost to house and feed the inmate.
Yes, I acknowledge that there are times where it becomes abusive in the united states, but to directly compare it to China and other slave labor using countries is a false comparison.
However, if you want one of the really nasty examples, Kamala Harris as a district attorney kept black inmates and other inmates beyond their minimum sentence requirements and refused to grant them parole ever so that she could keep people on prison work teams for fighting wildfires.
im still not convinced the president will completely overhaul income tax and tariffs. whole lotta talk but doubt there will be much doing
Fun fact. Tariffs started the Great Depression.
Factual fun fact: The stock market crash of 1929 actually caused the Great Depression. But the Smoot-Hawley Tariff Act a year later made the conditions worse.
HISTORY ROCKS!
Fun fact: Young people are the reason Trump won. Get with the times old man.
@DontKnowDontCare6.9 the market rebounded just like it always does in no time, but the tariffs were just government intervention that was unnecessary, combine that with a new deal and you have a Great Depression
@@zg-it America became prosperous under tariffs. this is neo-liberal, bipartisan propaganda.
funfact, dont get your history from tiktok or youtube comments. They dont know anything.