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.

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.

:arrow: Source
 
Bullshit. "The price of oil" made electronics go up. FUUUUUUUCK off. Every company is just taking the piss.
Well that is a part of it yes. Transportation of the product uses a ton of fuels and many other petrochemicals are used to make plastics and such. It has much less of an effect than say the RAM shortages but it very much does have an effect.
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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.



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
I mean no electronic is avoiding price increases at the moment and its only getting worse. But I suppose I do at least have to give props to Furukawa as he's.... at least just being blunt about it. Not coming up with excuses and giving people a heads up of many months before any changes are actually taken into effect.
 
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.

There's more reasons than just that obviously, but I know better than to bring politics up on GBAtemp of all places.
 
inflation is at its highest since covid

get ready for a slew of price increases across the board for every product you buy - from ice cream to weapons grade uranium cell phones
I mean we already have been seeing that.... It's just going to get worse until something changes. Sadly.... all the changes to happen since have only made things worse.
 
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Think it's only going up by £30 here. Hardly a deal breaker if you wanted one, unlike ram that went from £70 to £300.

It is what it is, only thing I dislike with this sort of price rise, is it takes ages to go the other way. Quick to raise, always slow to drop.

At least Nintendo are raising it in NA as well. Unlike Sony who did 2 or 3 raises in Europe, while keeping it the same price in NA for as long as they could.
 
Think it's only going up by £30 here. Hardly a deal breaker if you wanted one, unlike ram that went from £70 to £300.

It is what it is, only thing I dislike with this sort of price rise, is it takes ages to go the other way. Quick to raise, always slow to drop.

At least Nintendo are raising it in NA as well. Unlike Sony who did 2 or 3 raises in Europe, while keeping it the same price in NA for as long as they could.
Japan basically got most the price increases here. Japan got increases across the board while the rest of the world was just the Switch 2.
 
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Nintendo could maintain the price. They just don't want to make less profit, is that simple.

Yes prices are high all across the board, but Nintendo was already making a nice profit unlike Sony and Microslop.
Welcome to the unbelievable levels of greed Era.
 
Nintendo could maintain the price. They just don't want to make less profit, is that simple.

Yes prices are high all across the board, but Nintendo was already making a nice profit unlike Sony and Microslop.
Welcome to the unbelievable levels of greed Era.
not disagreeing

just curious to see the data you have to back that up
 
inflation is at its highest since covid

get ready for a slew of price increases across the board for every product you buy - from ice cream to weapons grade uranium cell phones
but bathing in the tears of IDF soldiers is still free so thats a win :rofl2:
 
Furukawa channels his inner Iwata to do his very own "Please Understand", and they said the multi-billion company died with him, imagine if Furukawa did this with everything people get mad at Nintendo about since the Switch 2, people would be hailing them as the second Iwata after he croaks.
 
inflation is at its highest since covid

get ready for a slew of price increases across the board for every product you buy - from ice cream to weapons grade uranium cell phones
been there done that it's been happening for years here right after covid ended
 
Last edited by Bladexdsl,
Bullshit. "The price of oil" made electronics go up. FUUUUUUUCK off. Every company is just taking the piss.
Let me introduce you to inflation. Entirely unaffected market sectors increase prices because they think inflation is an instruction rather than a measure.
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That's not to say console prices are independent of memory prices. These are obviously connected.

But in general, yes a shortage of bananas affects car prices because firms increase prices inline with inflation.
 

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