As the Switch 2 approaches, Nintendo is looking to quickly attract as wide an audience as possible. But in the background, the threat of a price increase looms. The reason is customs uncertainties related to US trade policies. CEO Shuntaro Furukawa is talking about a flexible strategy, which could evolve after the launch if international conditions change.
Nintendo wants to "popularize quickly" the Switch 2
Shuntaro Furukawa hammered it home to investors: the current priority is to achieve mass adoption of the Switch 2. This ambition is supported by forecasts of 15 million units sold in one year. But behind this objective lies a commercial strategy that is much more malleable than it appears. For the moment, Nintendo is refraining from increasing the price of its new console. Instead, the company preferred to adjust accessory prices to offset the costs associated with customs duties.
At the same time, the Japanese firm optimized its logistics by prioritizing deliveries from Vietnam rather than China, thus benefiting from more favorable tax conditions, for the time being. But the trade truce decided by the Trump administration between the United States and several countries, including Vietnam, expires in July. If no new agreement is reached, tariffs could increase sharply.
A price increase after launch is not excluded
Nintendo therefore does not rule out a price adjustment after the fact. "If tariff assumptions change significantly, we will consider the necessary adjustments," Furukawa said. A cautious statement, as Nintendo is known for, but one that carries significant weight. Nintendo's competitors have already led the way, including in France: Sony has raised the price of the PlayStation 5, and Microsoft has done the same for the Xbox Series X/S. The justifications? Inflation, unstable exchange rates, and escalating production costs.
In this tense environment, Nintendo could in turn fall into line if the economic pressure becomes too great. But by focusing first on an "attractive" price (everything is relative), the Japanese firm hopes to win the public's favor and quickly establish its new console in the video game landscape.
Source: Eurogamer
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