Analysts blame tariffs for high Switch 2 price, say $450 cost is buffer against uncertainty

Why is the Nintendo Switch $450? In short: Nintendo is charging you extra because of risks, principally from tariffs.

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The Switch 2 will release on June 5 for $450, complete with the first-ever $80 Switch game. Fans are still dealing with sticker shock and are demanding Nintendo lower the price, but that's not likely to happen. The Switch 2's high MSRP is Nintendo's way of trying to navigate an unprecedented global market while protecting its hardware profit margins in the process.

IGN spoke to a group of industry specialists and analysts, asking why the Switch 2 costs so much. The consensus is Nintendo is responding to the uncertain effect of tariffs with the only thing it can really control: Price.

Nintendo is effectively charging a premium because of risk; everyone now has to pay extra money upfront to offset this risk. The global market is currently volatile with reciprocal trade tariffs levying back and forth, and all signs point to even more rocky terrain for the tech sector.

"Nintendo appears to be building in a buffer against these potential trade barriers while ensuring they maintain their traditional positive margin on hardware," professor and SuperData founder Joost van Dreunen told IGN.

Other analysts like Piers Harding-Rolls agreed with van Dreunen:"My view is that they probably had a range of pricing for the US market in play up until the last minute due to the uncertainty on import tariffs."

Dr. Serkan Toto, CEO of Kantan Games, says that Nintendo could also have been emboldened by Sony's $700 PS5 Pro:

"Nintendo probably factored in possible tariffs, the current inflationary climate in the world and the US$700 Sony dared to charge for the PlayStation 5 Pro last year."

It's believed that the Nintendo Switch 2 could cost even more as the so-called modern day trade wars continue.