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The Switch 2 baseline could be very weak when/if the price hits the equivalent of $450+ in Japan. But it seems like Nintendo understand that they can't price it too high there despite the weak competition from PS and PC.

And given the high frequency of decent to great selling Nintendo titles, the "baseline" isn't exactly a baseline. Like... they'll get multiple spikes a year with an effect lasting for a few weeks. Also, an accumulated library of evergreen titles may outweigh hardware price hikes' impact on the baseline.