Nintendo responds to PlayStation price hike

Date:

Nintendo has joined Microsoft to respond to this week’s shocking PlayStation 5 price hike, saying it had “no plans” to increase the cost of the Nintendo Switch in the same way.

In a statement to Eurogamer this morning, Nintendo confirmed that it had “no plans to increase the trading price of its hardware”.

The response has gone beyond that of Microsoft, who noted Sony’s dramatic decision last night by simply saying it “wanted to provide our fans with great gaming options” before repeating the Xbox Series X and S launch price.

Eurogamer Breaking Newscast: Sony reluctantly raises the price of the PS5, but knows it can get away with it.

Nintendo’s full statement includes a quote from company chairman Shuntaro Furukawa, given at the June AGM, then reiterates that Nintendo’s pricing will stand for now.

Here’s that statement in full:

“As our President, Mr. Furukawa, stated at the 82nd General Meeting of Shareholders in June:

“While we cannot comment on pricing strategies, we currently have no plans to change the price of our hardware due to inflation or increased acquisition costs in any country. We will determine our future pricing strategies through careful and ongoing deliberations.”

“While the final price to consumers is always determined by retailers, as Mr. Furukawa said, Nintendo has no plans to increase the retail price of its hardware.”

Yesterday, Sony stunned the gaming industry by announcing an unprecedented price increase for the PlayStation 5 base model and the discless version, both of which will now cost £30 more in the UK and €50 more in Europe.

Elsewhere in the world, Japan, China, Australia, Mexico and Canada will also see price increases. But the US won’t see a price hike at this point.

PlayStation boss Jim Ryan blamed the price increases on “high global inflation rates, as well as unfavorable currency trends, impacting consumers and putting pressure on many industries” and said it had been a “difficult decision”.

The move has been widely criticized, especially at a time when many are dealing with mounting economic hardship.

Speaking to Eurogamer, analyst David Gibson of MST Financial explained that Sony’s decision was due to foreign exchange costs.

“Sony would have budgeted on certain cross rates versus dollar costs,” Gibson explained, “but the pound and other currencies have all moved because of rising interest rates.

“Yes, freight rates have increased, but the semiconductor market is improving and DRAM prices are falling.

“The fact that Sony hasn’t changed US prices shows that it’s largely a forex situation versus dollar cost, not inflation.”

However, in response to yesterday’s news, industry analyst Piers Harding-Rolls suggested that — as unpopular as this move may be — the changes were unlikely to dent pent-up demand or Sony’s earnings.


The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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