Video game company Nintendo (NTDOY) is still facing increased tariffs on its Switch 2 console in the U.S. despite President Donald Trump’s announcement of an exemption for electronics. That’s due to the classification of video game consoles, which fall under the ‘toys’ category. That means the Switch 2 will be subject to the full 145% tariff for units made in China and imported to the U.S.
This could be a major blow to Nintendo as it may jack up the price of the Switch 2 game console ahead of its June 5 release. This would also affect Microsoft’s (MSFT) Xbox Series X/S and Sony’s (SONY) PlayStation 5.
Interestingly, Valve’s Steam Deck, a handheld gaming PC comparable to the Switch, is classified as a PC and not a toy. That means it will be included in the tech tariff exemption. This could play to Microsoft’s advantage as reports claim it plans to release a similar Xbox-branded handheld gaming PC later this year. If it gets the same classification as the Steam Deck, it could avoid tariffs, lining it up to better compete with a potentially overpriced Switch 2.
Nintendo Stock Movement Today
NTDOY investors are likely unaware of the Nintendo Switch 2 not being included in the new tech tariff exemption. As a result, the stock is up 3.52% as of Tuesday afternoon, adding to its 23.48% year-to-date gain. Shares of NTDOY might lose this momentum when investors realize the latest tariff relief doesn’t apply to Nintendo’s products.
Is Nintendo Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Nintendo (NTDOF) is Moderate Buy, based on six Buy, two Hold, and one Sell rating over the last three months. With that comes an average price target of $82.53, representing a potential 13.69% upside for NTDOF stock.
