Nintendo Switch Won’t Be Getting a Price Increase ‘At This Point’ Despite Higher Costs
Nintendo president Shuntaro Furukawa has said that there will be no price increase for the Nintendo Switch “at this time,” despite the higher manufacturing costs of the hardware.
talk Nikkei Asia, Furukawa said Nintendo has no plans to adjust Switch pricing to “offset rising production and shipping costs,” and those comments meant that MetaQuest 2’s price would be reduced to “manufacturing and shipping costs.” It follows Meta’s decision to raise $100 as [Meta’s] We have more products. ”
“Not considering [a price increase] At the moment, for two reasons,” Furukawa said. Our competitors are the world’s entertainment, and we always think about pricing in terms of the value of the entertainment we provide.
“Our products also include software. Nintendo has sold over 100 million Switches to date, and it is important to maintain momentum across the business. It will lower the profit on domestic switch sales.”
Furukawa also said that the Switch’s OLED model remains the least profitable Switch, and that “increased shipping costs, not only by air but also by sea,” doesn’t help.
“We are thinking about what we can do,” Furukawa said. “The weaker yen could be a plus for Nintendo because most of our sales come from overseas, but it also increases overseas promotion and labor costs. We are increasing our inventory purchases in foreign currencies.”
The statement also came after Switch sales “fell 23% year-over-year in volume for the April-June quarter amid shortages of semiconductors and other components.” Despite planning to sell Switch consoles, it expects annual net income to decline by 29% for the fiscal year ending March 2023.
Regarding the ongoing semiconductor shortage, Furukawa believes the situation will improve “in the second half of this summer,” but the future is still uncertain, with Nintendo unable to give a clear outlook for Switch sales after this year. you can’t.
For those expecting word about the unconfirmed but highly-desired Switch Pro, Furukawa confirmed Nintendo’s commitment to focusing on only three models: the standard model, the Switch Lite, and the OLED model. Of course, things could change at any time, but Nintendo is staying course for now.
“I can’t say specifically what’s missing,” Furukawa said. “Nintendo continues to sell three titles” [Switch] Model: Standard model. Switch Lite with reduced price, size and features. And an OLED model. We will work out the best strategies as we go along. Looking ahead to the years to come, we are doing our best to source quality products at reasonable prices. ”
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