Nintendo Switch Will Not See a Price Boost – At least Right Now.
Predictions point to the platform’s net profit decline over the next fiscal year. Nintendo states that a Switch price hike is not an option. The platform holder cites a growing cost of production and shipping as reasons for its smaller profit margins.
Nintendo president Shuntaro Furukawa spoke to Nikkei Asia and explained why they don’t plan on charging more for their current Switch offerings. Furukawa says they want to “prevent pricing people out” and that software sales are important to keep the momentum of Nintendo’s business. It doesn’t take long for your console to be four years old and significantly less powerful than other playmates to turn the tide in your favor.
When Furukawa was asked about Nintendo’s ability secure semiconductors, he didn’t mention specific shortages. While Furukawa paints a positive picture of the remainder of this year’s components supply, he says that “things remain uncertain” beyond that. In talks about reevaluating the price, Nintendo may be “uncertain” where it all begins.
The system is well-known for its unique line-up and functionality. After a strong 2021 financial report, Nintendo’s operational profit dropped by 15%, with Switch sales decreasing. The console maker expects to report a 29% decrease in net profit in the fiscal year. Some of this is due to an increase in production costs. Nikkei Asia asked Furukawa about how to absorb rising shipping and material costs. Furukawa also spoke on Nintendo’s current dilemma with the OLED model.
Furukawa stated that OLED models would be less profitable than other models for the time being. “The shipping costs have increased not only for air but also for sea. We are looking at what we can do.”
Furukawa believes that Switch’s hit program will be a help in reaching its sales goals, but it’s also an aging system with a saturated market. An aging system with younger, more powerful competitors (including portable ones). There are no major upgrades beyond the OLED model. Refusing to join Meta’s price hike may be the best console-related Nintendo news. I wouldn’t pay more for a console if it didn’t have any upgrades.
