Gone are the days when mid-life console prices began to decline and later adopters would enter the generation for a lower price of admission. Increases to PlayStation 5 and Xbox Series hardware prices in recent months have not gone down well with gamers. Most bizarrely, the original Nintendo Switch increased its price after the Switch 2 launched. Gaming, and console gaming in particular, is going to keep getting more expensive.
With the Switch 2 launching at a much higher price than the original Switch, many were unhappy. Before Switch 2 released, Nintendo’s livestreams were spammed with ‘drop the price’ in the chat – though that hasn’t stopped it becoming the fastest selling Nintendo console of all time.
With the incredible rise in the cost of RAM many had feared that the Switch 2 would increase in price. That, for now at least, is not Nintendo’s plan. Nintendo President, Shuntaro Furukawa has said in an earnings call that the company are working with their suppliers to ensure a steady and cost-effective supply of components (credit VGC for the translated quotes). As with all tech, production costs typically get pushed onto the consumer.
Traditionally consoles have been loss leaders, with the platform developer making their money on games. That has shifted significantly in the last 2-3 generations leading to profit-centred pricing on all hardware. Furukawa also said the company are keen to avoid making a loss on consoles and costs haven’t yet seen significant impact on hardware profitability.
He did go on to say that this is where things stand for Nintendo at present, and that increases to hardware costs will always be up for review. With the trajectory of the industry, a future rise seems highly likely. Hardware price increases are usually publicly communicated before they’re actually changed, allowing customers pay the lower price before the rise. On the flip side, I wouldn’t get your hopes up for a price decrease for the Switch 2 any time soon.
What Switch 2 games have you been playing recently? Are you still holding out for a Switch 2 price cut? Let us know in the comments below or join the friendly and active Gamer Social Club Discord to chat about all your favourite Nintendo games.
