Despite a rise in shipping and manufacturing expenses, Nintendo is standing firm on the price of their Switch console, with plans not to raise it to avoid scaring off new customers.
In an interview with NikkeiAsia, Nintendo president Shuntaro Furukawa said that the company wants to “avoid pricing people out” and that it thinks “about pricing in terms of the value of the fun we offer.”
Like many tech companies, Nintendo has been hit hard by the global semiconductor shortage and supply chain crisis. The console, which is now 5 years old, saw a 23 percent decline in sales during the April to June quarter.
The 2017 launch of the console tripled the company’s profits, however Nintendo’s annual net profit is expect to follow the same decline as the console, as the company forecast a 29 percent decline for the fiscal year ending March 2023.
Nintendo has sold over 100 million units of its Switch console range to date, and Furukawa says that its important that the company continue to push their software products to maintain business momentum and demand for the console.
“Our products also include software. Nintendo has sold more than 100 million Switch units so far, and it’s important to maintain the momentum of our overall business.”
Despite the stock shortages and sales decline, Nintendo aims to reach its target of 21 million units sold for the year. While consoles generally slow down around the 5 to 6 year period, Furkawa says that upcoming titles are set to provide a boost in sales.
“Having hit software also gives a boost to hardware. We have a lineup of new games that will allow us to take a crack at meeting our sales forecast, including Splatoon [3] coming out in September and Pokemon [Scarlet and Violet] in November.”
