What happened
In 2025 the Trump administration's 'reciprocal' tariffs hit dozens of trading partners — including a 20% rate on Vietnam, where roughly a third of Nintendo's Switch units are assembled. Nintendo called the tariffs 'sweeping' and 'constantly changing' and raised its US prices: the Switch went from $299.99 to $339.99, the OLED model from $349.99 to $399.99, the Switch Lite from $199.99 to $229.99, with accessories like the Joy-Con 2 and controllers also rising.
Then the legal basis collapsed: in February 2026 the US Supreme Court found the tariffs illegal, after lawsuits from businesses and dozens of states. Since May the US has refunded $80 billion in tariffs with interest. Nintendo moved quickly to claim its share — filing a lawsuit in March demanding the White House issue refunds with interest, without disclosing how much it had paid in tariffs.
What Nintendo did not do was pass the refunds to the customers who paid the higher prices. In its suit the company argued customers 'got exactly what they bargained and paid for'. US gamers disagreed and are suing the company over the tariff price hikes.
What it cost
Switch lineup prices rose $30–50 overnight — Switch $299.99 to $339.99, OLED $349.99 to $399.99 — and consumer lawsuits followed.
Why it happened
Nintendo kept the higher prices in place even after the tariffs that justified them were ruled illegal.
It pursued the US government for refunds with interest while telling customers they had got what they paid for.
The hike covered the whole lineup, from consoles to $5 accessory increases, maximising the amount customers had overpaid.
The lesson
Pass-through pricing is only as safe as the reason you cite: if the justification collapses, the customers who paid it will come for the difference.
Aftermath
Nintendo's refund lawsuit against the US government is pending, and consumer litigation over the price hikes has been filed in the US.
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