Thursday, June 1, 2023

Nintendo warns: it does not plan to lower the price of the Switch this year

At this time, the video game industry is revolutionized by the launch of The Legend of Zelda: Tears of the Kingdom. However, there are also less pleasant news for fans of Nintendo: the company does not plan to lower the price of the Switch this year.

The news was confirmed through the statements of Shuntaro Furukawa, president of the Japanese company (via VGC). A position that is quite curious, considering that Nintendo comes from closing a fiscal year in which Switch sales fell more than 20% year-on-year, and has acknowledged that it expects them to continue to decline.

The truth is that reducing prices to try to give a global push to the commercialization of the console is not part of the strategy of those from Kyoto. According to the manager, production costs remain high despite the fact that some components have managed to become cheaper. He also assured that even if the prices of raw materials fell, it would take time until the manufacture of the console began to be cheaper.

“Production was hit hard during the previous fiscal year, so we made sure parts procurement is done well in advance to ensure stable production. (…) Currently, there are no plans to reduce the price of our hardware during this fiscal year.Furukawa said of the Nintendo Switch.

The Nintendo Switch will maintain its price despite the drop in sales

Photo by erik mclean in Unsplash

Beyond justifying the decision not to lower the price of the Switch, which is entering its seventh year on the market, Nintendo assured that he doesn’t plan to upload it either. Although the company warned that the international business outlook continues to be challenging, especially due to inflation and currency exchange rates.

“While we have no plans to increase (Nintendo Switch) prices, the yen remains weak and acquisition costs remain high, so we will continue to monitor the situation closely.”

Shuntaro Furukawa, president of Nintendo.

During fiscal year 2023, from April 1, 2022 to March 31, 2023, 17.97 million Nintendo Switches were sold. This was 22.1% less compared to fiscal year 2022, where 23.06 million were traded. And the projections for fiscal year 2024, already underway, are not the best. The company aims to sell 15 million units of its console, which would represent a further drop of 16.5%. Although the Japanese themselves have recognized that the goal is otherwise optimistic.

“Maintaining the sales momentum of the Nintendo Switch will be difficult in its seventh year. Our goal of selling 15 million units this fiscal year is a bit of an exaggeration.. But we will do our best to boost demand before the holiday season so that we can achieve the target,” Furukawa told investors.

With the decision not to lower prices until at least next year, the Nintendo Switch catalog continues to be aligned as follows:

  • Nintendo Switch Lite: $199 (US)/Euro 219 (Spain);
  • Nintendo Switch: $299.99 (US)/Euro 299.99 (Spain);
  • Nintendo Switch OLED: $349.99 (US)/ €349.99 (Spain).

Added to this are special editions of the OLED model to celebrate major game releases. Such the cases of splatoon 3, Pokémon Scarlet & Violet and The Legend of Zelda: Tears of the Kingdom. Typically, these variants—which boast allegorical designs, but do not include the game in question—sell for an additional $10/euros.

Of course there are also bundles of the Nintendo Switch that do include games along with the console, but we are already talking about more specific (and expensive) offers that are not usually available in all regions.

Whatever the case. Nintendo has already made it clear that its immediate plans do not include a price drop for the Switch.. Can the next one change history? Maybe. It all depends on when its next console is released, which is rumored to not be announced before April 2024.

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