TL;DR: Nintendo of America president Doug Bowser discussed with Wired the impact of new tariffs on the Nintendo Switch 2, which may increase its price from $449 to $600. The tariffs affect manufacturing in Vietnam, Cambodia, and China. Nintendo is assessing the situation, having already moved some production out of China.
So something that I wonder about with the MSRP is how much of that is a Nvidia tax that inflated the price? The Nvidia GPU market has been so absolutely screwed by Nvidia’s lack of competition pricing model.
Business to business is different than the consumer market. Nintendo comes to Nvidia and orders a custom product with a minimum order of 10 million chips, Nvidia wants that deal. They aren’t going to arbitrarily increase the price because they can because Nintendo can and will move to another vendor. Nvidia wouldn’t risk fucking up a long-standing relationship like that, especially since Nintendo is a repeat customer, and they can rely on repeat business from them each year. These are long standing relationships that don’t just fall apart that quickly unless one party wants to drastically change what they are doing.