Nintendo wants to keep its hardware prices – including that of Switch 2 – right where it is, but it isn’t making promises. At the Q&A after its November 6th results briefing, president Shuntaro Furukawa said Nintendo would have to consider a price revision if rising costs can’t be absorbed over the mid to long term, Nintendo’s summary shows. The report is only in Japanese so far, so parts of it have been translated for the quotes here.
For modest cost increases, Nintendo covers them itself first, Furukawa said in Japanese: it tries more efficient production, carries what that can’t absorb, and wants to “maintain selling prices as much as possible.” A price change comes into play only when that stops working over the mid to long term and keeping “a healthy profit structure” becomes difficult.
The Switch 2 has already gone up in price once: back in May in Japan and in September everywhere else. Furukawa said Japanese sales have cooled since, after buyers rushed in ahead of the rise.
Nintendo’s inventory rose to ¥814.5 billion (about $5.1B or Php 324 billion) at the end of September, from ¥539.8 billion (about $3.4B or Php 215 billion) at the end of March, figures quoted in a question at the briefing.
Furukawa put the rise mainly down to finished products and raw materials. Holiday console production peaks at the end of September, and pricier memory parts and planned buying to keep production steady add to it.
Pricier parts don’t hit costs right away, he said; they show up gradually as stock sells. From October, parts bought at higher prices make up a bigger share than in the first half, so Nintendo expects a bigger hit. Nintendo’s forecast already allows for that.
Physical games feel it as well, because Switch game cards use memory, though the effect is smaller than on the console. Nintendo prices each game on its own, Furukawa said, not across the board.
Nintendo still needs about 10 million more Switch 2 consoles by March to hit its 16.5 million forecast. Holiday sales weigh heavily on a year’s console shipments, Furukawa said, so sales over the next few weeks are “very important” to the plan.
