Nintendo president Shuntaro Furukawa explains Switch 2 price increases in recent Financial Results Briefing
As a part of their Financial Results Briefing for the previous year, Nintendo president Shuntaro Furukawa took to the floor to answer key questions around the Switch 2 and the company's approach for the coming year. The most pressing among these related to the upcoming price increases to the system, as well the reasoning behind the differing values from region to region.
Shuntaro Furukawa said:This change in hardware pricing was not due to any one specific factor. Rather, the decision was made in light of various changes in the recent market conditions which we believe will have a medium- to long-term impact on the global outlook of our dedicated video game platform business.
Regarding Nintendo Switch 2, the basic approach to our dedicated video game platform business remains unchanged: first expand the hardware installed base, and then drive software sales. If the increase in costs were seen as something temporary that would subside relatively soon, then we could have pursued other options, such as working to improve productivity and expand the installed base while maintaining hardware prices.
Unfortunately, the recent surge in memory and other component prices, and the changes in the market environment, including trends in the foreign exchange market and the price of oil, are all factors that we anticipate will continue over the medium to long term. As a result, we felt that the profitability of our hardware would suffer significantly if we maintained our existing pricing, potentially impacting our business operations over this time frame. For the sustained growth of our dedicated video game platform business, it is important to maintain a healthy earnings structure for our overall business. For this reason, we made the difficult decision to reflect a portion of our costs in the selling price.
The reason that the extent of the price revision differs from region to region is because each region is impacted to a different degree by the various changes in the market environment.
Furukawa also concedes that this increase will raise the barrier of entry for the platform, though stresses that Nintendo's focus is on delivering fun that is "worth more than the price", promising a variety of new experiences unique to the Switch 2.
Shuntaro Furukawa said:I will not discuss the specifics of how this price revision could impact Nintendo Switch 2 sales, but we recognize that this raises the barrier for entry to a certain extent for people deciding whether to make a purchase.
That being said, the most important thing in our dedicated video game platform business is to offer engaging fun that is worth more than the price. Going forward, Nintendo and other software publishers plan to release a variety of titles, and we aim to expand the installed base by conveying that these titles offer new experiences unique to Nintendo Switch 2.
While uncertainties remain regarding future trends in component prices, we recognize that they could have an impact not only this year but next year as well. As for what comes after that, we will make necessary preparations to ensure that we can respond flexibly to whatever situation arises.
Those interested in reading more of the Q&A summary can find the full release below, translated into English directly by Nintendo.















