Nintendo’s Switch 2 launch is poised to electrify gamers worldwide, but behind the scenes, a complex geopolitical storm brews. With production largely centered in Asia and looming tariffs threatening to spike costs, how fast could Nintendo realistically shift Switch 2 manufacturing to the U.S.? Experts say the answer is years-not months-due to the massive logistical, financial, and supply chain hurdles involved, making a swift American production pivot unlikely before the console’s debut. Meanwhile, Nintendo’s strategic partnership with Samsung aims to ramp up output and meet soaring demand, underscoring the high stakes of this next-gen rollout.
The short answer is that it would take a lot more time than you’d think, and the long answer is the same reason why every major hardware manufacturer that heavily relies on factories outside the U.S., like Apple, has been scrambling to find alternative solutions.
“Such a move would take years,” New York University Stern School of Business economics professor Joseph Foudy told AELGAMES. “Nintendo would have to set up a final assembly factory in the U.S., which means finding land, building a facility, and recruiting a workforce.”
According to the Financial Times, Nintendo currently manufactures more than half of its hardware in Vietnam and Cambodia, and the rest is in China. A move to the U.S. for assembling Switch 2 units would require importing all the custom parts and paying the tariffs anyway. On top of that, Nintendo would have to shell out for the higher cost of labor in the U.S. If Apple were to do this, the cost to make an iPhone could nearly double, according to Bank of America analysts. The only way for Nintendo to completely avoid the tariffs would be to set up even more factories in the U.S. to make each and every part of the Switch 2 in the States, stretching the timeline out even further.
“By way of example, Apple has faced increased costs and risks due to its reliance on China dating back to the first Trump administration. And it has taken years to move even a fraction of its production to places like Vietnam and India,” Foudy said.
That’s also when Nintendo moved some of its Switch production away from China and into Vietnam and Cambodia. That six-year-old decision might be the only way Nintendo can sidestep the staggering 125% tariff on Chinese imports that went into effect on Wednesday. Further centralizing Switch 2 production in those countries could minimize the impact. On Wednesday, Trump dropped every country’s tariff except China’s down to 10% for the next 90 days, but if nothing changes, the tariffs on both Vietnam and Cambodia could shoot back up to some of the highest costs when they’re reinstated.
“[Nintendo’s] best hope is that these other locations strike at least a partial trade deal with the administration or that the industry as a whole receives an exemption,” Foudy said. “But it’s impossible to guess the chances of either.”
None of this is good news for those of us who winced at the $450 price tag for the Switch 2. Nintendo of America president Doug Bowser said the tariffs didn’t factor into the price, but the CEO of research firm DFC Intelligence suspects they did, and predicts that there will be no price increase when pre-orders eventually go live. If he’s wrong or Trump reverses his decision on the 90-day pause, the Switch 2’s price might be closer to $600. Analysts told Reuters last week that iPhones could cost 30% to 40% more if Apple were to pass on the increased cost to consumers.
So, how quickly could Nintendo move Switch 2 production to the U.S.? So long that it’s not going to do that, at least not before the handheld launches in June. Nobody, not even Nintendo, can escape Trump’s tariffs.
How fast could Nintendo shift Switch 2 production entirely to the US
Shifting Nintendo Switch 2 production entirely to the U.S. would take years, not months. According to NYU Stern economics professor Joseph Foudy, Nintendo would need to secure land, build a new assembly facility, and recruit a skilled workforce, all of which are time-consuming processes. Even then, the specialized components are manufactured internationally, meaning tariffs would still apply unless Nintendo also localized component production, which would extend the timeline further. Higher labor costs in the U.S. would increase expenses significantly, potentially doubling manufacturing costs as seen in similar cases like Apple. Given these factors, a complete U.S. production shift before the Switch 2 launch or in the near term is highly unlikely.
How long would it take Nintendo to build a US factory for Switch 2
Building a factory in the U.S. for Nintendo Switch 2 production would take years, typically estimated at four to five years or more. This timeline includes finding land, constructing the facility, and recruiting and training a skilled workforce. Experts like NYU Stern economics professor Joseph Foudy emphasize that setting up such an operation is a complex, multi-year endeavor, not something achievable in months. Additionally, even with a U.S. factory, Nintendo would still face challenges like importing specialized components and higher labor costs, which further complicate the feasibility of a quick transition to American manufacturing.