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One research firms expects the price of Nintendo Switch 2 to hold steady in response to President Donald Trump’s sweeping tariffs, arguing that Nintendo had already baked potential tariffs into the system’s cost. That’s despite Nintendo of America president Doug Bowser downplaying the impact of tariffs on Nintendo’s price decision-making process.

Research firm DFC Intelligence said Monday that it was “modeling a 20% price increase over the next two years” for Switch 2. But in updated guidance sent to Polygon from the firm’s CEO David Cole, “the reference to a 20% hardware price increase over the next two years applied to the hardware side in general and not just the Switch.”

“In the case of the Switch 2, we believe much of the 20% increase was already baked into the $450 price,” Cole said. “It is not likely Nintendo will raise the price, and if they do, we don’t expect it to be 20%. Also much of that increase is in the form of NOT discounting prices. So not necessarily a price increase but where we model a 20% price decrease in the next year or so we have the prices holding steady.”

Nintendo announced the launch price of Switch 2 at $449.99 last Wednesday, but that was before Trump outlined “reciprocal tariffs” on dozens of countries, including territories where Nintendo manufactures its hardware. Trump hit China with an additional 34% duty on Wednesday, and Vietnam, where Nintendo has moved some of its production, with a 46% tariff. Trump also hit Japan, where Nintendo is headquartered, with a 24% tariff on Japanese goods.

Trump’s move pushed Nintendo pause Switch 2 pre-orders in the U.S., which were planned to open on April 9, while it “assess[ed] the potential impact of tariffs and evolving market conditions.”

DFC Intelligence’s report did not specifically say that the launch price of Switch 2 could creep beyond the previously announced $449.99 asking price, but that hardware prices could go up depending on costs associated with tariffs. While game consoles have traditionally gone down in price, the most recent console generation bucked that trend; Nintendo still sells the Switch at its original launch price of $299.99. Rivals Sony and Microsoft have both raised prices on their current-gen consoles in certain territories.

“Additional clarity is expected when Nintendo releases its earnings in May,” analysts said in the report.

According to DFC Intelligence’s report, tariffs and uncertain pricing may push Nintendo to scale back its manufacturing, and the research firm lowered its sales forecast for the Switch 2, from 17 million to 15 million units in 2025. But DFC Intelligence still expects Switch 2 to be “the fastest-selling console system ever.”

Even with a possible price increase in the U.S., the firm is bullish on Nintendo’s prospects. Switch 2, DFC Intelligence says, “will continue to grow Nintendo’s growth among PC gamers and the core adult market,” and “has the potential to reshape the video game market.”

Nintendo Switch 2 is slated to be released on June 5 alongside Mario Kart World, Nintendo Switch 2 Welcome Tour, and a long list of third-party and Switch 2 Edition upgraded versions of original Switch games.

Update: DFC Intelligence clarified to Polygon its modeling for this report, stating that it concluded that Switch 2 will not rise in price as a result of tariffs. This story has been updated to reflect this clarification.