How Nintendo's tariff hike ended with angry gamers and a lawsuit

How Nintendo's tariff hike ended with angry gamers and a lawsuit Thu 23 Jul 2026 at 4:30am As Donald Trump's tariffs flung the global economy into chaos, US gamers saw the price of a Nintendo Switch inflate by $US40 (about $A57) virtually overnight. Now, the Japanese company could be on the receiving end of a massive payday from the US government over those "illegal" tariffs. And their customers? Well, as Nintendo argues in a new lawsuit, they got "exactly what they bargained and paid for". Tariffs 'sweeping' and 'constantly changing' In 2025, the Trump administration ushered in a new economic vision: "reciprocal" tariffs on dozens of its trading partners. Vietnam — where roughly a third of Nintendo's Switch units are assembled — was slugged with a 20 per cent tariff rate for most imports. In its new lawsuit, Nintendo claims these tariffs were "sweeping" and "constantly changing" and led to the company raising its US prices. The Nintendo Switch OLED Model, for example, experienced a $US50 increase after tariffs were announced. A number of other items also jumped in price, according to GameDeveloper.com. | Nintendo item | Price before August 2025 (in USD) | Price after (in USD) | |---|---|---| | Nintendo Switch Lite | $199.99 | $229.99 | | Nintendo Switch OLED Model | $349.99 | $399.99 | | Nintendo Switch | $299.99 | $339.99 | | Joy-Con 2 | $94.99 | $99.99 | | Nintendo Switch 2 Pro Controller | $84.99 | $89.99 | | Nintendo Switch 2 Dock Set | $119.99 | $124.99 | | Nintendo GameCube Controller | $64.99 | $69.99 | | Nintendo Sound Clock: Alarm | $99.99 | $109.99 | 'Illegal' ruling led to billion-dollar payout Then, Donald Trump's grand plan was dealt a deadly blow. In February, the US's highest court found the tariffs Mr Trump had placed on foreign imports were illegal. The court ruling came after angry businesses and dozens of US states sued. While Mr Trump vowed to impose new tariffs, Nintendo was already seeking its refund. In March, the game developer filed a lawsuit, demanding the White House issued refunds with interest. It did not disclose how much it had paid in tariffs. Overall, $US80 billion in tariffs has already been refunded by the US since May, plus interest at a rate of up to 7 per cent, analysis by Oxford Economics has found. Over the next year, the same amount is expected to be refunded to businesses globally. It seems highly likely Nintendo may be part of the massive payout. So, seizing an opportunity to recoup some cash, customers filed their own lawsuit against Nintendo in April. Gamers got what they paid for, Nintendo argues The April class action alleged that Nintendo customers "would not have paid those higher prices" if it were not for the tariffs. It sought to reclaim those "tariff overcharges" for the "millions of consumers" affected. Now a new court filing submitted this week, from Nintendo's side, shows that fight will be anything but easy. Calling the price increases "modest and selective", the company argued customers are "not entitled" to a rebate. Instead, it claimed customers "voluntarily" paid the increased cost. "Those who bought Nintendo's products received exactly what they bargained and paid for: a console, game, and/or accessory at a price to which both parties agreed," the filing said. "The money Plaintiffs paid represents the purchase price of the goods they wanted and received; Plaintiffs are not entitled to a rebate simply because of intervening legal developments related to tariffs." The company has asked the court dismiss the case, also arguing consumers technically paid third-party retailers, rather than Nintendo. "If a consumer did not want to pay the advertised price, they were free to abstain from purchasing the product or seek out competing products,"Nintendo's filing added. Latest in gaming disappointment The plaintiffs in the case against Nintendo are yet to respond, but the lawsuit is the latest example of gaming companies drawing the ire of their users. Loading...Earlier this month, Sony announced it will completely stop the production and sale of physical discs for the PlayStation. From 2028, gamers will still be able to buy a physical box for games — but all it will contain is a code to download the game digitally. The decision has faced backlash from those who fear it is attempting to stamp out the second-hand market. Meanwhile, a memory chip shortage is continuing to drive up gaming console prices globally as major DRAM manufacturers increasingly supply semiconductor wafers to data centres. Microsoft has already announced significant price increases across the entire Xbox Series X/S line-up due to the shortage, and stated it expects component prices to double again by 2027.