Nintendo is in a Sticky Situation with Switch 2 – How Do They Get Out?

It didn’t take long for excitement to devolve into something bordering on a disaster for Nintendo in the days following the April 2^nd Nintendo Switch 2 Direct. Whilst fans of Nintendo have been known to express disappointment, sadness, and even frustration, it’s rare to see not just explicit vitriol, but mockery, hurled towards the Japanese giant. 

Chaos has ensued. Information has come from scattered sources. There is confusion around how the Switch 2 version upgrades and Game-Key cards work. There are misunderstandings of price differences between territories. Ambiguous language used in the Direct regarding incompatible Switch 1 software has created uncertainty. There has been an endless barrage of calls for Nintendo to lower the price of the system and its games. On top of that, the evolving situation surrounding US President Trump’s tariff policies has added further confusion to what the final launch situation may look like. It’s been a messy week for a company that prided itself on clear and concise communication over the lifespan of the original Switch. 

What does Nintendo do from here? It needs the Switch 2 to be a success, not only for their video game revenue but for broader company goals. I have no doubt that crisis meetings are happening daily as it navigates this situation. If I were in the war room, here’s the plan I would be laying out to try to do some damage control. 

Acknowledge the Situation

The first step must be acknowledgement. In the time since post-Direct information came to light, Nintendo has stuck to their original script. Interviews published over the days following the event were conducted early and embargoed until the following week, meaning more recent context wasn’t addressed.

The Treehouse Live streams were bombarded with angry messages demanding “DROP THE PRICE”, but everything proceeded as planned with no direct communication to consumers addressing their concerns. While I didn’t expect drastic changes to their showcases, the decision for Nintendo not to respond more swiftly to the mass confusion and concerns online is questionable. Now is the time to acknowledge the feedback and wrestle back control of the narrative. 

Eat the Tariffs – At Least for Now

In recent years, Nintendo wisely diversified its supply by shifting much of its manufacturing to Vietnam in anticipation of tariffs hitting China. They could not have anticipated tariffs of 47% being placed on Vietnam, higher than those initially applied on China. But that was last week! Since then, China ended up with average tariffs of 134.7%, followed by a 90-day pause on any tariffs over the baseline 10%, then consideration of exclusions for tariffs on China for certain electrical components and products which for now doesn’t include game consoles, to now apparently no such exclusion ever being considered in the first place…

Look, my guess as to what will happen next with the evolving tariff situation is as good as that of any one of Trump’s top advisors – we both have no idea. With policy chopping and changing on a whim, Nintendo is scrambling alongside countless other companies trying to understand the impact it will have on their business.

My suggestion here would be the simplest – do nothing. At least for now.

Doug Bowser has stated that tariffs weren’t considered when determining the price of the system in the US. Trying to calculate new pricing and manufacturing plans based on policies that change every other day is a minefield. Nintendo delayed US Switch 2 preorders for a month following the uncertainty. It leaves them with an extremely short runway leading up to the June 5^th launch to change course. It also means they would already have a substantial amount of hardware supply in the US, and the 90-day pause gives them time to get additional supply into the country and adjust distributions from their manufacturing sites. 

I think the price point of AU$699.95 is more than fair for Switch 2 at launch. At some point in the future, I understand that the price of the system may have to increase. Nintendo may just increase in America, or they could opt for a slight price increase in the US as well as around the world, spreading the impact of increased costs in more digestible chunks between all markets. 

Nintendo should acknowledge that they will face increased costs, but as a company, they will absorb these added costs rather than pass them on to consumers – at least during the launch window. It would be an easy PR win that flips the same price point from one that many found hard to swallow to one that feels concessional to customers. 

Include Nintendo Switch 2 Welcome Tour for Free – Outside of Japan

Nintendo Switch 2 Welcome Tour looks like a delightful experience that shows all the Switch 2 has to offer. But in a world where Astro’s Playroom comes for free on every PS5, Nintendo’s decision to charge for what is essentially a tech demo is puzzling.

By changing this to a free title, Nintendo would be increasing the system’s value at launch simply by adding a free experience that I’m sure most Switch 2 owners would like to try out. It also doubles as an excellent showcase for Switch 2 owners demonstrating the system to other potential buyers, who may be impressed enough by all the technology included to buy a console themselves. As a halfway measure, you could keep this as a paid purchase in Japan, which has more favourably priced hardware compared to other markets, to retain some level of sales revenue from the game. 

Drop Mario Kart World’s Price

This is a bit trickier. I think Mario Kart World looks incredible. In an industry that nickel-and-dimes consumers to subtly increase game prices to well over what we pay at retail, I don’t doubt it will prove to be worth the price tag, but it’s easy to see why it has taken some people aback. There is a 50% increase from Mario Kart 8 Deluxe’s AU$79.95 to AU$119.95 for Mario Kart World is a sharp jump. For our US friends, it’s a 33% jump from US$59.99 to US$79.99.

However, this does overlook the fact that we’ve had Nintendo game prices pretty good here in Australia for a long, long time. Nintendo set the price of the majority of their first party titles at $80 back in the Wii U days, carried that through to the Switch launch, and never increased it over a Switch lifespan which lasted longer than almost anyone could have anticipated. When combined with the fact that local retailers would often offer launch day discounted price in the realms of $64 or $69, there’s bound to be some whiplash upon seeing the price for Mario Kart World, even if it just an adjustment to match market trends, at least here in Australia. Had Nintendo chosen to increase their prices over the last few years, it might have made the transition a bit smoother, but I understand the need to make the shift at some point.

We can debate whether you feel the cost is justified or whether Nintendo is merely charging more because it can. It’s setting a new ceiling in the US, but in Australia it isn’t as expensive as some future titles on other consoles which are reaching $129.95. Nintendo is clearly experimenting with pricing in line with what they perceive to be appropriate value. The next first-party title Donkey Kong Bananza will be launching at AU$109.95/US$69.99, which I think is a more digestible increase. Nintendo may want to consider setting this as the upper limit for their software prices in the short to medium term. Dropping the price of Mario Kart World by $10 would be an easy PR win that would be welcomed by fans and help win back some of those disgruntled customers.

Put All of This in One Place and Clear up Misinformation

The amount of conflicting and incorrect information I’ve seen over the last week is concerning. We’ve had people thinking Mario Kart World is US$90 (it’s not – it’s €90). We’ve had people thinking all physical games utilise the Game-Key Card system, and many people misunderstanding exactly how Game-Key Cards work. We’ve had box art indicate that games such as Metroid Prime 4: Beyond only had a Switch 1 copy of the game on the cartridge and that you would need to download the Switch 2 upgrade separately. We’ve had confusion around Switch 2 upgrades in general, from cost to delivery, to the late news trickling out that some would be included in the Nintendo Switch Online + Expansion Pack membership, and many other unclear details. 

Information has been released sporadically and from so many different sources that it was inevitable that incorrect information would spread as people tried to fill in the gaps. Nintendo would be wise to address all this information in one place, and I can’t think of a better format than another Nintendo Direct. Acknowledge the current environment and feedback, make some or all of the adjustments listed above, concisely address the biggest misunderstandings circulating online, and point people to a central location where they can get more information if needed. 

These are substantial, but not earth-shattering, changes. They will inevitably result in lower revenue intake on some of their products. However, some short-term pain will lay the groundwork for long-term gain here. Per its 2024 Annual Report, Nintendo had AU$14 billion in cash and no debt. They have sufficient financial reserves to weather a hiccup like this.

The importance of getting the Switch 2 into as many homes as possible is important for reasons beyond just making money on hardware and software. From theme park expansions to multiple upcoming movies based on their properties, Nintendo has growing ambitions to diversify its revenue streams and make the most of its stable of recognisable brands. For that to work, it needs the Switch 2 to be successful at introducing as many consumers as possible to Nintendo’s properties, and that’s going to require some sacrifices while it wins back some of the faith and trust it has squandered over the last couple of weeks.

There’s still plenty of time to right the ship. We’ve seen Sony endure a disastrous launch with the PlayStation 3 and end up successfully correcting course. To be clear, I don’t expect the Switch 2 to be anything even resembling a disaster. But for a company with a history of being seen as “the good guy” in an industry full of shady characters, it would be in Nintendo’s best interest to use this time before launch to rewrite the narrative of the Switch 2 before the situation gets away from them.

Even if it dents the bottom line in the interim.