The Switch 2 is one of the hottest products in Nintendo history, with pre-orders selling out almost immediately in both the U.S. and Japan, according to ABC News. In Japan alone, more than 2.2 million customers reportedly entered pre-orders for the device. This is in spite of its steep retail price of $450 in the United States.
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But as a Japanese company that sources much of its hardware from Vietnam, Cambodia and China, Nintendo’s costs could quickly skyrocket, making the “high” $450 price a distant memory. The only way to avoid the tariffs would be for Nintendo to shift production to the U.S., but that would also be costly, not to mention time-consuming.
So, what would a “Made in the USA” version of the Nintendo Switch 2 cost, and is it a realistic proposition?
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What Would Be Involved in Nintendo Shifting Production to the US?
Even if Nintendo chose to manufacture the Switch 2 in the United States, it’s not as if it could simply open a factory and start cranking out devices tomorrow. In fact, the process would be incredibly complicated, as it would involve building new factories and production facilities, establishing a new supply chain and hiring workers.
All of these factors are extremely expensive, and most of them are ongoing expenses. In other words, it’s not as if Nintendo could fork over some type of one-time “penalty” in the form of upfront costs — it would be permanently building in a higher cost of operation into its business.
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How Much Might a US-Produced Nintendo Switch 2 Cost?
Any estimate of how much the Nintendo Switch 2 would cost if it were entirely manufactured in the United States would by definition be a speculation. However, industry analysts estimate that the Switch 2 would cost closer to $600, according to video game industry website Polygon.
Numerous analysts have speculated that the cost of an iPhone, made by Apple, could jump 25% to 40% if it were to be made in America, according to CNBC. If that estimate is applied to the Nintendo Switch 2, this would put the price of the device at somewhere between $625 and $700.
However, this isn’t a strict apples-to-apples comparison, and there’s no way to arrive at an exact figure. But it seems likely that the price of the Switch 2 would jump by at least a couple hundred dollars.
Is This Just a Mental Exercise?
In many ways, yes, the idea of projecting a price for an American-made Switch 2 is simply a mental exercise. The likelihood of Nintendo switching production to the United States lies somewhere between slim and none. But nonetheless, it’s a helpful exercise to understand how much prices would go up on numerous consumer goods.
While the idea of bringing manufacturing back to the U.S. is certainly country-forward, consumers may not understand how much the cost of their electronics, technology, clothing and more would rise if those products were made in America. The price of the Nintendo Switch 2 is just one example.
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Sources
ABC News, “What to know about the Nintendo Switch 2 preorder chaos.”
Polygon, “How quickly could Nintendo move Switch 2 production to the US?“
CNBC, “Here’s how much a ‘Made in the USA’ iPhone would cost.”
This article originally appeared on GOBankingRates.com: The Nintendo Switch 2 Already Costs $450: Here’s What a Made in the USA Version Could Cost
