Why Nintendo Stock Popped on Monday
- - Why Nintendo Stock Popped on Monday
Rich Smith, The Motley FoolAugust 4, 2025 at 5:33 PM
Key Points -
President Trump announced 15% tariffs on Japan last week.
Nintendo responded by warning of a price increase on its Nintendo Switch products Friday.
On Monday, the price change took effect.
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Nintendo (OTC: NTDOY) stock jumped in Monday trading, rising 7.1% through 11:20 a.m. ET in response to a press release the Japanese video game company put out just before the weekend began.
Pricing for the company's various Nintendo Switch gaming consoles and related products will change in the United States "based on market conditions," said the company, "effective August 3, 2025." And by "market conditions" it seems the company means President Trump's tariffs on Japanese imports.
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Team of videogamers cheering.
Image source: Getty Images.
What's changing at Nintendo
Nintendo clarified that Nintendo Switch 2 prices and prices for physical and digital Switch and Switch 2 games "will remain unchanged at this time," although the company gave no guarantee that prices won't change in the future in response to U.S. tariff policy on Japanese imports.
What may change are prices for:
Nintendo Switch
Nintendo Switch (OLED Model)
Nintendo Switch Lite
Select Nintendo Switch and Switch 2 accessories
Is this good or bad news for Nintendo?
When we compare current product prices to those from Monday of last week, the effect becomes clear. A Nintendo Switch Lite unit that cost $199.99 a week ago now costs $229.99 (up 15%). The OLED Model, which cost $349.99 last week, now costs $399.99 (up a bit more than 14%). The ordinary Nintendo Switch, which cost $299.99 last week, costs $339.99 today (up 13%).
All these price changes resemble the 15% tariff on Japanese imports announced by President Trump July 31 just a bit too closely for it to be a coincidence. It seems pretty clear that Nintendo is passing the cost of higher tariffs directly to consumers, preserving its profit margin in the process.
This might hurt sales a bit, but so long as profit margins remain intact, investors seem happy today.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy.
Source: “AOL AOL Money”
