Nintendo has no obligation to pass tariff refunds onto customers, the company says, because Switch buyers received "what they bargained and paid for"

Nintendo has told a US court it doesn't owe anyone a refund on the price hikes it imposed after last year's tariffs—and that customers who paid more "received exactly what they bargained and paid for."

The Japanese company is seeking dismissal of a class-action lawsuit that argues consumers deserve a cut of the tariff refunds Nintendo itself is chasing from the US government.

Why This Matters

If you bought a Switch OLED or a pair of Joy-Con 2 controllers after Nintendo raised prices in 2024, you're out of luck—at least according to Nintendo's legal team. The case could set a precedent for how other electronics companies handle similar situations.

The price hikes hit the original Switch lineup and Switch 2 accessories (but not the Switch 2 console itself), and came after sweeping US tariffs on imports from Asia went into effect. Those tariffs were later ruled illegal by the Supreme Court, opening the door for companies to claim refunds.

Nintendo sued the US government for its tariff money back in March. The class action, filed in April, argues that consumers who paid the inflated prices should get a piece of that refund.

Key Detail

Nintendo's dismissal request, obtained by Game File, argues that the company actually absorbed part of the tariff costs rather than passing them all on to customers.

"Like its market peers, Nintendo made the difficult decision to adjust some of its prices in response to market conditions including costs of memory, labor, shipping, and tariffs."

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The company says it made "modest and selective price adjustments" and chose to bear the costs on some of its most popular products, including the Switch 2.

"Unlike many of its market peers, however, Nintendo did not simply increase each product's price by the amount of tariffs it paid on that product or impose an across-the-board tariff surcharge."

It also argues it would be impossible to calculate exactly how much of each price increase came from tariffs, making any refund calculation a nightmare.

The Bigger Picture

Nintendo isn't the only company facing this kind of lawsuit. Similar class actions have been filed against Sony over PlayStation price hikes. Some companies—like FedEx—have promised to pass tariff refunds on to consumers, but most are quietly pocketing the money.

A Fortune report noted that many firms are using their tariff refunds to offset inflation from the Iran war, rather than returning it to customers.

What's Next

Nintendo is pushing for the case to be handled through private arbitration rather than a public court. The judge hasn't ruled on the dismissal request yet. If the lawsuit survives, it could force Nintendo to open its books on exactly how much it collected from tariff-related price increases—and how much it got back from the government.