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Nintendo president Shuntaro Furukawa explains Switch 2 price increases in recent Financial Results Briefing

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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.
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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.
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Those interested in reading more of the Q&A summary can find the full release below, translated into English directly by Nintendo.

:arrow: Source
 
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Scarlet said:
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.
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I'm still waiting for Nintendo to improve Mario Kart World as I just don't find, what's the word... Fun.
 
Marc_LFD said:
I'm still waiting for Nintendo to improve Mario Kart World as I just don't find, what's the word... Fun.
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I don't see that happening. I've gone back to playing 8DX. Some of the new tracks are cool, but I really don't like going back to the Wii system of premade vehicles instead if customization.
 
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"A bunch of ai companies are buying up ram, and we're not making enough profit, so we gotta jack the price up!" Also, we know we jacked the price up before because of American tariffs, and despite getting tariff refunds, shut up, go fuck your self, and buy a Switch 2!"
 
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Ah yes, when new Pokemon game is kinda ass and barely sells, it's time to make its access slab MORE expensive!

"first expand the hardware installed base, and then drive software sales."
LMFAOOOO! First prevent masses of kids interested in Pokemon, and then secure your system to all hell to get adults and hackers not interested in it as piece of hardware.
 
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ut2k4master said:
used in manufacturing and transport, among others. you dont have to comment at all if you dont know what youre talking about
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Ok so ALL prices will go back down when the Iran nonsense is settled right? And oil goes back to normal?

And when the "ram shortage" is settled all prices will get cut? Right?

Oh. No they fucking WONT. They'll stay jacked right the fuck up because it's all bullshit and everyone is all on the take.
 
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Osha said:
It really sucks to see the entirety of the electronics industry, and as a result consumers as well, suffer like that thanks to the idiocy of a handful of billionaires who can't think for themselves and would rather have a machine do it poorly for them.
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lolwut? They know EXACTLY what they're doing - they're still targeting the lower IQ demographic and spread their propaganda to further hook em on more garbage. We're right on the precipice of the Matrix if anything - wake up and look around, or just be fed slop that will dictate all your financial decisions intravenously.

So basically we either stop buying into all the new and overpriced garbage and recycle and enjoy PLENTY of old gold, or we're feeding our own cooking fire...
 
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Skv0ra said:
Isn't going to reach kids with Switch 2 exclusivity nearly as well as main titles.
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Wut? It's about to become the second best selling game(if not already) on Switch 2, only behind Mario Kart. lmao! It's going to be the best selling Pokemon spin off game by next month and has a higher attach rate than Sword and Shield.
 
Switch 2 is a paper weight without a jailbreak.

While the bootrom keys for the ps5 were found, which should lead to a proper jailbreak, there ain't a game on that turd I'd buy the thing for.

If anything it seems more worth my time to just fix up my current Switch (could use a re-shelling) and hold off until a jailbreak shows up.

Even with my concerns about the longevity of the internal storage of these systems, I'd STILL buy a Series X over a PS5 if it came to just using it "as intended." Even then, my use for it would almost exclusively be backwards compatibility related; so no, a Series S does fuck all for my desired uses.
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lauty29 said:
Man I miss Iwata, such a loss.
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He was a brilliant programmer, less so a manager/director/[insert authority title here].

Though I'd be doing a disservice to ignore the boss moves he did to keep the company going even when it was clear the Wii U wasn't gaining new games or sales.
 
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Scarlet said:

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.



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.



Those interested in reading more of the Q&A summary can find the full release below, translated into English directly by Nintendo.

:arrow: Source
Click to expand...
Haters be hating as if they already don’t own a Switch 2
 
There was a time in Japan’s history where he would be explaining the price increase from the parking lot, kowtowing to the customers in front of a camera beside other executives, asking for forgiveness.

 
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purple_bandit said:
Ok so ALL prices will go back down when the Iran nonsense is settled right? And oil goes back to normal?

And when the "ram shortage" is settled all prices will get cut? Right?

Oh. No they fucking WONT. They'll stay jacked right the fuck up because it's all bullshit and everyone is all on the take.
Click to expand...
All a result of evil morons being in charge, no consumer protections in place any more so corporations/billionaires are free to pillage everything. Iran isn't gonna be "settled" any time soon, and AI isn't going away any time soon.
 

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