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haxxiy said:
Phenomajp13 said:

They are not forecasting that figure just to cut later. Not exactly sure what is so hard to believe about them cutting the price. Cutting the price this late allows the Switch continue to reach consumers that haven't taken the plunge or encourage more Oled upgrades. Cutting the price also moves Oled model out of Switch 2's pricing range. The Switch definitely needs pricing adjustments in NA and Europe due to the exchange rates issue with Japan. Switch also made more profit this year than last year despite a drop in hardware and software, clearly they can afford to cut the price.

The operating profit increased because the bulk of their business is overseas but it's measured in an increasingly devalued yen, in dollars both the profits and revenue dropped.

The Switch isn't manufactured in Japan, it's the price there that's currently too low and not the other way around. If anything the Japanese margins must be painfully thin nowadays, so it sucks for them that it's their best-performing market currently.

The fact that the Yen is low is probably also part of what boosts the sales, since people buy from Japan probably in other asian countries, have it shipped, while their currency is much stronger. I would argue the Yen weakness and Switch unusual hold in Japan are in direct relation.