Nintendo (NTDOY -6.57%) stock is losing ground in Friday's trading. The Japanese gaming giant's share price was up down 6.7% as of 2:15 p.m. ET, and had been off as much as 7.6% earlier in the daily session.
Nintendo is getting hit with sell-offs as investors hone in on headwinds the business could face due to new tariffs. The company is gearing up to launch its Switch 2 console this year, and tariffs could complicate the platform's debut.
Last month, Nintendo shared a brief video that introduced gamers and investors to its new Switch 2 platform and revealed that the new hardware is on track for release this year. The Japanese gaming giant's stock has posted some strong gains thanks to excitement surrounding the system, and its share price is still up 19% year to date even with today's pullback. However, investors are becoming increasingly concerned that tariffs could hurt the Switch 2's launch.
Nintendo is scheduled to host an event to provide a full unveiling of its Switch 2 console on April 2. The company is likely to share specifics about the platform's launch window, price, and game lineup. It's possible that tariffs could have a significant impact on the new system's pricing, and that might shape sales performance for the platform.
If the Switch 2 winds up being subject to substantial new import tariffs, Nintendo could respond by passing some or all of the added costs along to shoppers. As a result, it's possible that tariffs could wind up pushing the sticker price of a Switch 2 significantly higher, making it a less appealing buy for consumers.
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