free counter
Entertainment

Nintendo Switch WILL NOT BE Obtaining a Price Increase ‘At This Point’ Despite Higher Costs

Nintendo president Shuntaro Furukawa has stated that the Nintendo Switch will never be obtaining a price increase “at this time,” regardless of the higher costs to create the hardware, because the company wishes to “avoid pricing people out.”

Talking with Nikkei Asia, Furukawa said Nintendo does not have any plans to regulate the cost of the Switch to “offset rising production and shipping costs,” and these comments follow Meta’s decision to improve the cost of the Meta Quest 2 by $100 as “the expenses to create and ship [Meta’s] products have already been increasing.”

“We’re not considering [a price increase] at this time, for just two reasons,” Furukawa said. “To be able to offer unique entertainment to an array of customers, you want to avoid pricing people out. Our competition may be the selection of entertainment on the planet, and we always consider pricing with regards to the worthiness of the fun you can expect.

“Our products likewise incorporate software. Nintendo has sold a lot more than 100 million Switch units up to now, and it’s vital that you keep up with the momentum of our overall business. In most cases, a weak yen makes domestic Switch sales less profitable.”

Furukawa also shared that the OLED style of the Switch will still be minimal profitable Switch, also it doesn’t help that costs have “increased for shipping not merely by air, but additionally by sea.”

“We’re considering what we are able to do,” Furukawa said. “The weak yen could be regarded as a benefit for Nintendo, since this type of large share of our sales originates from abroad, but our overseas promotional and staff costs also rise. We’re making more inventory purchases in foreign currency to counter that.”

The statements also come after Switch sales dropped “23% on the entire year by volume in the April-June quarter amid shortages of semiconductors along with other parts.” Nintendo is expecting a 29% drop in annual net profit in the fiscal year ending March 2023, though it is thinking about selling 21 million Switch consoles.

With regards to the ongoing semiconductor shortage, Furukawa believes that the problem are certain to get better in the “latter 1 / 2 of come early july,” however the future continues to be unclear and Nintendo neglects to give an absolute outlook for Switch sales beyond this fiscal year.

For all those longing for any word on the unconfirmed but much-desired Switch Pro, Furukawa has doubled down on Nintendo’s commitment to concentrating on just three types of the Switch – the typical model, Switch Lite, and the OLED Model. Obviously, things can transform at at any time, but Nintendo is staying the course for as soon as.

“I cannot say specifically what’s an issue,” Furukawa said. “Nintendo will continue steadily to sell three [Switch] models: the typical model; the Switch Lite with minimal price, size and features; and the OLED model. We’ll workout the very best strategy once we complement. We’re doing our far better procure high-quality products at a proper price having an eye toward another couple of years.”

To summarize, Furukawa said that keeping prices down isn’t impacting Nintendo’s capability to procure parts, it’s simply that demand is exceeding supply. Furthermore, he believes Nintendo’s strong software lineup for 2022, including Splatoon 3 and Pokemon Scarlet and Violet, can help the business reach its goals and overcome a few of the challenges due to shortages.

Have a tip for all of us? Desire to discuss a possible story? Please send a contact to newstips@ign.com.

Adam Bankhurst is really a news writer for IGN. It is possible to follow him on Twitter @AdamBankhurst and on Twitch.

Read More

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker