Miyamotoo said:
We can realistically have current Switch version next year for $250, but thats still not low enough price option that will replace price point of market that 3DS currently covers, they will probably need $200 price offer next year espacily with launch of Animal Crossing and Pokemon gen 8. |
Yea, Nintendo is definitely aiming at $199.99 or lower with this 2019 revision, they have had a cheap revision every time the first new gen Pokemon comes to one of the portable systems to get a ton of parents buying the game and console for their kids.
They did:
-GameBoy Color for $69.99
-GBA SP for $99.99
-DS Lite for $129.99
-2DS for $129.99
Those were all available within 2 months of the first new gen Pokemon (the first new gen DS Pokemon got delayed, but would have been released along side DS Lite, so the plan was the same)
Also, observing how Nintendo handled the 3DS revisions and pricing most recently indicates that they will do their best to maintain perceived value of each revision as best they can. (Something Nintendo does very well with both their hardware and software by maintaining price points)
In 2019 I think they will have 2DS at $49.99, N2DS XL at $99.99, Nintendo Switch Mini at $199.99, and then keep the OG Nintendo Switch at $299.99, but bundle a game with it.
And then in 2020 or 2021, we may see a Nintendo Switch Deluxe for $299.99 with better battery life and a larger screen, but still no performance difference. At that time, also a price drop on the OG model to $229.99 without a game bundled and the Mini model to $179.99 (or even $149.99 depending on how manufacturing cost reductions go). And then, the option for Nintendo to make a later revision with a performance boost is still on the table.
That strategy keeps manufacturing cost lower while maintaining higher perceived value and price points of each model for a longer duration, while also addressing different price entry points for different buyers.
The idea of selling a performance boosted Nintendo Switch Pro for $299.99 and slashing the OG Switch to $199.99 in 2019 would be much a much less profitable of a strategy.
A cost saving 2DS-esque revision released after a Pro model would be expected to be sold for a much, much lower margin in turn. And, even a battery boosted model would have to replace the OG model due to not having enough pricing space above the OG model.
The opportunity to release a performance boosted model later is also diminished, as the first boosted Pro model in 2019 would make buyers reluctant to buy another one (and a later released Pro model would have better features for people wanting a premium model anyway, making a 2019 Pro model less beneficial for both Nintendo and Pro model buyers).
Basically, the 2019 Nintendo Switch Pro strategy just ends up more costly in both manufacturing and revision opportunities.
Also, Fragmenting the user base with upgraded hardware required games does not increase third party support due financial reasons, i.e. the smaller user base of the upgraded hardware is just less potential sales compared just supporting the original hardware (making the fragmentation strategy a rather moot extra cost).
