The evolving tariff scenario in the U.S. has been a concern for gamers over the past few weeks, particularly regarding potential price increases for gaming consoles like the Switch 2. While larger tariffs have been temporarily paused, those on goods from China remain active. A memo from U.S. Customs and Border Protection outlines exemptions for certain electronics but excludes gaming consoles. This means that while PC gamers may see little change, console prices could rise depending on where they are manufactured.

Gamers should anticipate possible price hikes as Nintendo, PlayStation, and Xbox consoles face varying impacts. Nintendo's manufacturing shift to Vietnam offers some relief, but only temporarily. Conversely, PlayStation and Xbox consoles, primarily made in China, are likely to see significant price increases due to the current 145% tariffs, with analysts predicting a possible 30% rise. The situation remains uncertain, affecting not just video games but also board games.

Exemptions and Their Limitations

U.S. Customs and Border Protection recently detailed a list of electronics exempted from tariffs. These include automatic data processing machines, semiconductors, smartphones, communication equipment, SSDs, sound media, and transistors. However, gaming consoles are notably absent from this list. Thus, initial headlines about electronics exclusions being beneficial for gamers turned out to be misleading.

This exclusion implies that while specific computer components might avoid steep price hikes, gaming consoles imported into the U.S. will still be subject to tariffs. For instance, the inclusion of SSDs in the exemption potentially benefits PC gamers by stabilizing costs for gaming laptops and their parts. In contrast, consoles such as the Nintendo Switch 2, PS5, and Xbox Series X and S, which are shipped into the U.S., could experience price surges. The extent of these increases depends on the manufacturing location and any future tariff modifications.

Potential Price Increases Across Brands

Each gaming brand faces different tariff implications based on its manufacturing locations. Nintendo’s strategic move to manufacture in Vietnam partially shields it from immediate tariff effects. With President Trump announcing delays on broader tariffs affecting countries like Vietnam, the Switch 2 might escape significant price changes for now. However, the temporary nature of this delay, lasting only 90 days, introduces uncertainty post-July, especially after the Switch 2 launch.

PlayStation and Xbox enthusiasts face more daunting prospects. Given that the PS5, Xbox Series X, and Series S are predominantly manufactured in China, they fall under the newly imposed U.S. tariffs, currently at 145%. Without changes, U.S. consumers might witness substantial price increases for newly shipped consoles. Bloomberg analysts project a possible 30% price hike for these consoles. The volatile tariff landscape complicates predictions, urging gamers to prepare for higher expenses across various gaming platforms, including board games, underscoring a broader financial impact on the gaming industry.