Shuntaro Furukawa, the head of Nintendo, recently shared some intriguing insights about the future of the upcoming Switch 2 console. He mentioned that the company might contemplate a price increase after the console’s launch, contingent on how tariff situations evolve.
In a discussion with investors, Furukawa emphasized that Nintendo’s immediate goal is to successfully launch the Switch 2 and achieve strong short-term sales. However, he hinted that once the dust settles, the pricing landscape may shift.
“Our current focus is on rapidly establishing the Switch 2 in the market,” Furukawa noted, as reported by Yahoo News, with translation provided by Genki.
He further elaborated, “If there are significant changes in tariff assumptions, we will evaluate the necessary price adjustments while considering various factors.” This highlights Nintendo’s proactive approach in navigating the unpredictable economic environment.
Historically, Nintendo has taken steps to lessen the impact of U.S. tariffs on the Switch 2’s rollout. Instead of hiking the console’s price, they opted to increase the cost of peripherals. Furthermore, the company is prioritizing stock produced in Vietnam over China, aiming to benefit from better tariff terms.
Despite these strategic maneuvers, the landscape remains fluid. The 90-day tariff pause announced by former President Trump is scheduled to expire this July, introducing further uncertainty into the pricing equation.
Recent reports from the Consumer Technology Association suggest that the prices of gaming consoles could spike by a staggering 69.4% if tariffs are implemented more rigorously (Tom’s Hardware).
Interestingly, we’ve seen both Sony and Microsoft make headlines recently with price increases for their PlayStation 5 and Xbox Series X/S consoles. Sony cited a “challenging economic backdrop, including high inflation and fluctuating exchange rates,” while Microsoft attributed their decision to “market conditions” and growing development costs.
In a promising twist, Nintendo has expressed confidence in the Switch 2’s launch potential, projecting it will outsell the original Switch. They anticipate around 15 million sales in the current financial year alone. With demand far outpacing even the highest expectations, it’s clear that Nintendo might have the leeway to consider upping the price of the Switch 2, even amidst these economic uncertainties.
