Nintendo has confirmed that the Switch will not get a price cut before April 2024. The company also commented on whether or nor $70 will be the standard price point for Switch games going forward. The English translation of a recent investor Q&A is available now, and regarding price cuts… don’t expect one soon.
Nintendo president Shuntaro Furukawa said the price of certain materials has come down since the Switch launched in 2017, but “overall costs remain high.” Furukawa pointed out that inflation and foreign exchange rates are also not helping Nintendo very much these days.
“Even if raw material prices decrease, it will take time for this to be reflected in manufacturing costs. Currently, there are no plans to reduce the price of our hardware during this fiscal year,” Furukawa said. “On the other hand, while we also have no plans to raise prices, the yen continues to be weak, and procurement costs remain high, so we will continue to monitor the situation carefully.
Furukawa said. Nintendo’s current fiscal year ends on March 31, 2024.
Console prices typically come down over time due to falling component costs strategic pricing initiatives. That hasn’t happened with the Switch so far, though. The system launched in 2017 at $300 and it’s stayed that price ever since. The Switch has sold more than 125 million units so far, but sales are now slowing down in the system’s seventh year on the market.
Xbox Series X|S and PlayStation 5 console prices have generally stayed in the same in most places around the world since those systems launched in 2020. The PS5 actually got a price increase in Canada, Europe, the UK, and other markets due to the “global economic environment.”
In other Nintendo hardware news, the company is reportedly working on a new console and it is shaping up well. However, Nintendo has confirmed it won’t launch any new hardware until April 2024 at the very soonest.
Also during the earnings briefing, Furukawa discussed The Legend of Zelda: Tears of the Kingdom being Nintendo’s first game to launch at $70, a $10 increase from the traditional price point of a Switch game. The executive echoed what Nintendo’s official line is, which is that Nintendo will make pricing decisions on a case-by-case basis. Furukawa was asked about the price increase in the context of how development costs are going up and if that would be passed along to the consumer in the form of a price increase at retail.
“This does not indicate a general increase in the price of our software,” Furukawa said. “Our approach is to determine the appropriate price of a product on a case-by-case basis. It is true that development costs are on the rise due to the enhanced breadth of content and the requirement of more advanced technology to support online play, so the pricing for our new titles going forward is something that we will continue to consider thoroughly.”
Tears of the Kingdom is out now, and if you’re just getting started, be sure to check out some of GameSpot’s starter guides and more information in the pages linked below.
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