No Price Reduction for Nintendo Switch This Year, but $70 Games Have Yet to Become the Norm
Nintendo enthusiasts, brace yourselves for the latest update regarding the price of the beloved Nintendo Switch console. The company has officially confirmed that there will be no price reduction for the Nintendo Switch before April 2024. Additionally, discussions surrounding the standard price point of $70 for Switch games have emerged. In a recent investor Q&A, Nintendo shed light on these topics, providing insight into their future plans.
Nintendo President Shuntaro Furukawa acknowledged that certain material costs have indeed decreased since the Switch’s initial launch in 2017. However, he emphasized that “overall costs remain high.” Factors such as inflation and foreign exchange rates pose additional challenges for the company. Furukawa highlighted the time required for raw material price reductions to reflect in manufacturing costs, leading to the decision of no hardware price reduction during this fiscal year. While there are no immediate plans for price hikes, the weakening yen and persistently high procurement costs demand cautious monitoring of the situation.
Console prices typically witness gradual declines over time as component costs decrease and strategic pricing initiatives come into play. However, the Nintendo Switch has maintained its launch price of $300 since its introduction. The system has achieved remarkable success, selling over 125 million units to date. Nevertheless, sales have shown signs of slowing down as the console enters its seventh year on the market.
In comparison, the Xbox Series X|S and PlayStation 5 console prices have generally remained stable worldwide since their respective launches in 2020. Notably, the PS5 experienced a price increase in select regions due to the “global economic environment.”
On the horizon, reports suggest that Nintendo is diligently working on a new console, with promising developments. However, the company has unequivocally stated that no new hardware will be unveiled before April 2024, at the earliest.
In other news, during the earnings briefing, Furukawa addressed The Legend of Zelda: Tears of the Kingdom as Nintendo’s first game to debut at the $70 price point, representing a $10 increase from the traditional price of a Switch game. The executive reiterated Nintendo’s stance, emphasizing that pricing decisions will be made on a case-by-case basis. Furukawa acknowledged that rising development costs, driven by enhanced content and advanced technology requirements for online play, demand thorough consideration when determining the pricing of future titles.
As Nintendo continues to navigate the ever-evolving gaming landscape, rest assured that pricing strategies and hardware developments will be handled with utmost care. Stay tuned for further updates as Nintendo continues to captivate gamers worldwide with their innovative offerings.
