With component costs rising, Nintendo shares good news for Switch 2 fans

During these tumultuous economic times, Nintendo has given shoppers some respite, at least temporarily. The company had a Q and A session with shareholders recently and it hinted that those looking to purchase the Switch 2 will not have to worry about the rising prices. This comes at a time when competitive console makers have increased pricing for not just their hardware but software as well.

When asked about increasing component costs including memory modules affecting profitability of the Switch 2 hardware, Shuntaro Furukawa who is the President and Representative Director stated that for the time being, Nintendo will be able to maintain profitability. To compensate for the rising component costs, it anticipates there are “areas where cost reduction may be achieved for the Nintendo Switch 2 through ongoing mass production efforts.”

Since the company is finding or has found ways to reduce production costs, or so it seems, the retail price for the console can be expected to stay steady ($449 on Amazon). Of course, Furukawa also points out that this will be possible only if there is no significant change in tariff assumptions or other unexpected factors.

It should be noted that while the company has not explicitly mentioned stable pricing for the Switch 2, there were no indications about pushing the rising component costs onto the customer. It did state that it is more challenging to introduce new titles at a “good pace” since the costs for software development are higher with longer timelines.

It looks like the success of the Switch 2 has put Nintendo in a strong position. It recently reported 10.36 million Switch 2 consoles sold between June 5 and September 30. The forecast has gone up from 15 million to 19 million units, making it even more popular than the original Switch.