Aside from ongoing restrictions on sourcing parts to manufacture the gaming hardware, Nintendo recently confirmed that shipping costs have increased. Despite these issues, Nintendo President Shuntaro Furukawa said price increases for the three Nintendo Switch models are not planned for the time being.
Furukawa said in an interview with Nikkei Asia that Nintendo isn’t considering increasing the retail prices of Switch models “at this time” for two main reasons. “In order to provide unique entertainment to a wide range of customers, we want to avoid over-priced people,” Furukawa said. “Our competition is the diversity of entertainment in the world, and we always price with the value of the fun we offer in mind.”
Nintendo currently has three Nintendo Switch models on the market. The regular console costs $299, which is its price since its launch in March 2017. The video game giant also offers a cheaper option with Nintendo Switch Lite for $199, while the latest version of the console comes with a larger OLED display for $349.
The Nintendo President reiterated that they still plan to sell 21 million Nintendo Switch consoles in this fiscal year ending in March 2023. Despite the supply chain challenges, Furukawa said they would keep all three Nintendo Switch models in stores.
Furukawa didn’t specify how Nintendo is handling the limited parts supply and how it plans to meet that sales forecast. But the executive said Nintendo is on track to improve its chip sourcing in the second half of this summer.
The cost of shipping Nintendo Switch devices by air and sea has also increased, Furukawa confirmed. And the Nintendo president said he expects the Nintendo Switch OLED to be “less profitable” than other models for some time.
But Furukawa noted that Nintendo’s business isn’t just about hardware. Noting that the company is releasing popular games later this year, including Splatoon 3 on September 9 and Pokemon Scarlet and Violet on November 18, the wild has been pushed back to 2023. And Furukawa said the release of new software products would also “boost” hardware sales.
Despite the challenges of keeping up with demand, the Nintendo Switch is the company’s best-selling home console today. Nintendo has sold 111.08 million Nintendo Switch units and 863.59 million copies of Switch games as of June last year.
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