Nintendo is reluctant to raise prices for its wildly successful Switch game console, despite rising costs and massive global inflationary pressures. Instead, the price of the Nintendo Switch should remain stable. Such as the Japanese Economic Service Nike Asia Nintendo president Shuntaro Furukawa explained that his company is doing everything it can to not exclude customers with its pricing. Prices for the Nintendo Switch should therefore not rise despite rising costs.
Nintendo includes extra costs for building the consoles
In the current situation, where the costs of purchasing various components increase and you also have to pay more money for transport and distribution, Nintendo wants to live with the fact that you can achieve lower profit margins, for the time being, says Furukawa. For now, the new OLED model remains less profitable than the other models.
According to the manager, Nintendo is also trying to keep an eye on the entire ecosystem of products in view of the switch. You must therefore ensure that the different variants of the Nintendo Switch continue to sell in large numbers because you also want to continue to sell the associated games in large numbers. In order not to have to increase the prices for the Switch, Nintendo is looking for ways to buy more components and other products from abroad, among other things, as you can take advantage of the weakness of the Japanese currency, the yen.
Nintendo is also trying to contain the rising costs of its foreign staff. As for the outlook for the rest of the year, the Nintendo president expressed his confidence, hoping that the introduction of some new games such as Splatoon 3 and Pokemon Scarlet and Violet could once again boost demand. At the same time, the situation with regard to the availability of previously scarce components is noticeably improving, so that, at least in this area, decreasing costs can be expected and there is less chance of bottlenecks.
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