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Sephiran 4 hours ago
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Kyuu said:
Sephiran said:

Why would they sabotage their Japanese sales when Nintendo are set to decline in Europe? It means they need Japanese sales more than ever to reach a big install base of Switch 2. Their weakness in Europe means the Japanese market will become ever more important for them. Basically they will be the opposite of Sony in that regard. GTA 6 will create a bloodbath for Switch 2 sales in Europe next year, while in Japan they will have Pokemon gen 10 doing enormous numbers for them if they build a big install base for Switch 2 there.

You underestimate Nintendo's dominance in Japan, and overestimate their "inherent" weakness in Europe. A more expensive Switch 2 would have still sold out for a while in Japan. I wouldn't consider a pricecut until shipments comfortably beat demand.

In Europe, the demand is low enough to benefit more from a lower pricetag. To maximize short/medium term sales, it needed to be cheaper in Europe, and more expensive in Japan to offset the losses.

The reality of what is happening with Nintendo and Europe is very similar to what Sony previously went through in Japan, a slow decline in interest which led Sony to prioritize other markets, this is the exact same situation for Nintendo in Europe. The main reason why Nintendo is now focusing on Asian expansion is that they know that Europe is a declining market for them and they need a bigger foothold in the growing Asian markets to somewhat replace the European market. Early shipment numbers from ''other regions'' sales of Switch 2 show that those sales are already very competitive with European sales for the Switch 2, so it seems Nintendo will be fairly succesful in pivoting to other markets.

We see this clearly from Nintendo's last earnings report; They reported 2,4M Switch 2 sales in Europe vs 1,93M Switch 2 sales in other regions (outside Japan, Europe and North America), it has never happened previously that other regions are so close to European sales. Which shows that the pivot really is happening for Nintendo. The reality is that Nintendo these days sell more Switch 2 consoles in Korea than they do in a lot of European countries, and China is probably a bigger market for them than UK already as well.

Last edited by Sephiran - 3 hours ago