Nintendo Switch Won’t Be Getting a Price Increase ‘At This Point’ Despite Higher Costs

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Nintendo president Shuntaro Furukawa has stated that the Nintendo Switch will not get a price increase “at this time”, despite the increased cost of producing the hardware, as the company “wants to avoid people”.

Speaking to Nikkei Asia, Furukawa said Nintendo has no plans to adjust the Switch’s price to “compensate for rising production and shipping costs,” and these comments follow Meta’s decision to lower the price of the Meta Quest 2 with $100 to raise as “cost to make and ship [Meta’s] products are on the rise.”

“We are not considering” [a price increase] right now, for two reasons,” Furukawa said. “In order to provide unique entertainment to a wide variety of customers, we want to avoid pricing people out. Our competition is the variety of entertainment in the world, and we always think about pricing in terms of the value of the fun we provide.

“Our products also include software. Nintendo has sold over 100 million Switch units to date, and it’s important to maintain the momentum of our overall business. Overall, a weak yen is making domestic Switch sales less profitable. “

Furukawa also shared that the Switch’s OLED model will remain the least profitable Switch, and it doesn’t help that costs “have increased for shipping, not only by air, but also by sea.”

“We’re thinking about what we can do,” Furukawa said. “The weak yen can be seen as an advantage for Nintendo as so much of our sales come from abroad, but our foreign promotion and personnel costs are also going up. We are making more foreign currency inventory purchases to counter that .”

The statements also come after Switch sales “dropped 23% year-on-year in volume in the April-June quarter amid shortages in semiconductors and other components.” Nintendo expects a 29% drop in annual net profit in the fiscal year ending March 2023, though it plans to sell 21 million Switch consoles.

With regard to the ongoing shortage of semiconductors, Furukawa believes the situation will improve in the “last half of this summer”, but the future is still unclear and Nintendo cannot provide a definitive outlook for Switch sales after this fiscal year.

For those hoping for a word on the unconfirmed but coveted Switch Pro, Furukawa has doubled Nintendo’s commitment to focus on just three models of the Switch: the standard model, Switch Lite, and the OLED model. Obviously things can change at any time, but Nintendo is sticking to the lesson for now.

“I can’t say specifically what is scarce,” Furukawa said. “Nintendo will continue to sell three” [Switch] models: the standard model; the Switch Lite with reduced price, size and features; and the OLED model. We will work out the best strategy along the way. We are doing our best to purchase high-quality products at an appropriate price with a view to the coming years.”

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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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