In a climate where gaming giants are grappling with inflation, Nintendo remains steadfast about its pricing strategy for the anticipated Switch 2. Unlike its competitors, who have opted for price hikes, Nintendo is confident in maintaining its console’s affordability despite rising manufacturing costs.
Nintendo’s president, Shuntaru Furukawa, addressed this during a recent shareholder Q&A, emphasizing the company’s confidence in preserving the Switch 2’s profitability. He mentioned that savings from “ongoing mass production efforts” could potentially counterbalance the increased costs of some components.
Nintendo’s Pricing Strategy
Fans are hopeful that Nintendo will keep the Switch 2’s price steady, as Furukawa noted that significant tariff changes could alter this stance. “We believe that we’ll be able to maintain the current level of profitability for hardware for the time being unless there are significant changes in external factors, such as a shift in tariff assumptions, or other unexpected events,” Furukawa said.
Even though component costs are on the rise, Nintendo remains optimistic about finding cost-saving measures through continued mass production. While some speculate about potential price increases in other areas, the core hardware remains unaffected for now.
Market Comparisons
Despite a challenging year marked by tariff fluctuations, Nintendo has opted not to increase the Switch 2’s price. However, there have been price adjustments for accessories and the older Switch models. In August, the original Switch’s price went from $229.99 to $339.99, and the Switch OLED saw a hike from $349.99 to $399.99. Even the Switch Lite was not spared, with its price moving from $199.99 to $229.99. A $5 increase also affected Nintendo’s Alarmo clock, now priced at $100.
Unlike Nintendo, both Sony and Microsoft have raised the prices of their latest consoles. In August, Sony added $50 to its PS5 models, citing economic challenges. Similarly, Microsoft increased the price for its Xbox Series X and S models twice this year.
Broader Industry Trends
The pricing debate extends beyond consoles to video games themselves. The unexpected $80 launch price of Mario Kart Tour sparked discussions industry-wide. Initially, Xbox planned to follow suit with $80 games this holiday season but later reversed that decision, although it did implement a price increase for its Game Pass.