but selling consoles at a loss then selling billions of games seems to be the industry standard.
Sony has done that in the past (note: they don't currently) but Nintendo has generally been very conservative about making a profit on hardware. In their quarterly financial disclosure they often say their 'profits minus expenses for materials etc.' are somewhat close to 50% for games versus hardware. Last year, Nintendo's gross profit from their main game platform was 46% hardware, 54% software.
The statement they put out is that $450 was not speculative on future tariffs. This of course could easily be PR to make the price look better by not raising it.
There was some corporate speak do I am very skeptical. But I am hoping they did add to the price just in case or we could easily see price increases. Unless the tariffs all get paused or Switch 2 gets an exception like iPhones did, both of which are certainly possible also.
There was an article earlier today claiming that the Switch 2 is NOT exempt, but I guess things will be clearer soon and it is possible that the rules could be tweaked, like FishyS said.
Then again, not to start any arguments or get too political, your President is unpredictable as hell and will probably mess with these tariffs and your economic policies a billion times until he's forced out of office or dies.
The U.S. is getting what they want. They sell more stuff and pay less for what they buy. They win.
The US is creating unnecessary sovereign risk and arguing they are the victim because their citizens are relatively wealthy and therefore consume a lot of goods. And so far I have seen little evidence of other countries reducing tarrifs in response. What has happened though is other countries reassessing their trade position with the US and creating trade deals which exclude the US
Again I would note what I have said elsewhere in this discussion. The US has a trade surplus with Australia. We buy more of your stuff than we sell to you. We also have a free trade agreement. We are strategic and military allies. In what universe is there any deal left to be had with Australia on trade?
Hell, the only reason the US Gov has given for the tariff on Australia is our biosecurity and disease controls on imports. Specifically on beef. Which is insane given I highly doubt Australians have any desire to buy American beef even if it was widely available given we have, you know, a world class beef industry we want to protect
Also Trump has been saying for like 2 years this was his plan, love it or hate it you can’t deny this is consistent.
Yeah, I'm not saying he doesn't have a right to do it. It's a democracy and the US elected the guy. But just because someone is elected doesn't mean they're suddenly immune from criticism
I would also agree broadly with the stated goal of the west broadly reducing our dependence on China. Especially for questionably produced resources. Thinking rare earth materials in particular
But the way the US has gone about this is completely nuts. Utterly chaotic. Self sabotaging. If the goal is to isolate China and ween ourselves off them globally for trade.... why reduce imports from the EU? Australia? Japan? South east Asia? Complete lunacy
Really, if after the last few weeks you're not sitting back and thinking this whole thing is insane? You need to step back for a bit and re-assess how you digest information and news. Because this whole thing is most definitely insane
@skywake It's most likely insider trading from the government. Sabotaging the economy so that the political heads can buy up the stocks and get richer off of them.
The whole situation is insane to me, and the fact that our own market is at the whims of a man who would be the equivalent to a mad king in the past is genuinely awful. America is in the hands of a tyrant that decides one moment that he wants one thing, and then decides the next that it's entirely different. If there is a deal being made with Vietnam, I bet that it won't last. He'll probably roll back on it in a couple weeks time.
"It is fate. Many have tried, yet none have ever managed to escape it's flow."
There was an article earlier today claiming that the Switch 2 is NOT exempt, but I guess things will be clearer soon and it is possible that the rules could be tweaked, like FishyS said.
Then again, not to start any arguments or get too political, your President is unpredictable as hell and will probably mess with these tariffs and your economic policies a billion times until he's forced out of office or dies.
Bwahahaha f'ing called it 😂
Just get this clown out of office already, America.
@VoidofLight
I'm sure there is some insider trading or at least insider trading curious stuff going on. But my general read on it is that they just generally have no idea what they're doing. As an outside observer to me it reads more like they naively thought it would play out differently and now are just spinning their wheels trying to save face
It's standard government operation when things bork. Only difference in this case it that they decided to implement an economic policy that would give you an F in high school economics with global impacts. And still haven't really stepped back from it
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Nothing much, from what I can tell.
Other than claims coming from the US administration itself, it seems Vietnam may purchase more military equipment from the US in return for normalising tariffs.
This is unlikely to make up for the loss of the European defence market.
It would also likely allow China to continue to use Vietnam as a work around.
I suspect that Vietnam is trying to strike a similar balance to that of India. However Vietnam is not as powerful as that country. Their situation is unenviable, stuck between two superpowers.
@Uncle_Franklin That's the issue we got nothing from Vietnam and US and this is why we haven't heard any PreOrder dates in US and Canada because of someone.
@Overzeal Out of curiosity what do you mean by Nintendo saying they overreacted? They just increased the price of accessories only in the US so it sounds like they are still in the process of reacting.
If they had waited on their announcement to delay pre-orders by like…an hour they could have skipped the fuss. By letting people stew the narrative that they were going to increase the console by $50, $100, even $150 took hold.
@Overzeal Out of curiosity what do you mean by Nintendo saying they overreacted? They just increased the price of accessories only in the US so it sounds like they are still in the process of reacting.
From other comments made in this thread one assumes any reaction would be classified as an "over reaction". Because the general narrative being pushed here seems to be along the lines of this whole thing is a game of 4D chess where somehow everyone wins and prices don't go up. Despite, you know, taxes literally being taxes and the rate and application of said taxes seemingly changing daily
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Topic: Updates on Vietnam #2
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