this post was submitted on 08 May 2025
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A couple companies have outright said to make up for lost profits from tariffs they're increasing prices everywhere else.
So Euro customers will pay more for a Switch 2 because due to tarrifs Americans will buy less.
I haven't heard AMD or Nvidia say they'll do it, but everyone is going to do it. If they don't, stock prices go down.
So basically "cause globalization" and because they're dicks, I see... same old story.
i dont think amd or nvidia wont do it as explicitly. its already known that at the moment, some locations in the EU are aleady seeing msrp 5070 sitting on shelves because its not a highly desireable product, while they get bought up in the US faster at a higher price because the stock of everything else is non-existent
They won't, Nintendo is one of the few companies who can get away with saying it.
But just because other companies won't say it, won't mean they won't do it.
The alternative is they sell less and make the same profit margin. That means profits don't just fail to increase by the desired percentage, profits could go down. Profits must never go down, because the global economic system is a house of cards and it could cause a healthy company to make very stupid decisions due to stock price and spiral into bankruptcy.
Stock price is only random people's opinion at the end of the day, they won't risk profits going down, everyone will see higher prices to compensate for a reduction in the American market
Nintendo can just say it because you can't play Zelda or Mario Kart anywhere else than their hardware, in a way they're a monopoly.
The console manufacturers will raise prices globally to cushion against the US tariffs, because the calculus is that by keeping the costs low for the US - they can make up the difference with game sales over the console’s lifetime.
I think something similar will happen to smart phones and tablets also, because of the trailing revenue.
Hardware like CPUs and GPUs lack that additional revenue stream, so it will depend on if AMD & nVidia determine it’s better to push the tariffs exclusivity onto US consumers, or spread them out globally and dampen the impact.