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Forums - Nintendo Discussion - The Problem with "Switch 2" pricing

Nobody is really talking about this, but the yen is very weak right now. Most people predicted $400+ for the next-gen console, but that would make it close to 60,000 yen in Japan. That's about $200 more on a normal dollar to yen exchange rate at 1:100. Nintendo doesn't have a history of selling their hardware this high, and with competition being more fierce than ever it's hard to believe it would sell as much in Japan at this price. Obviously the JP market is important to them, so what do you guys think they will do? Here are some options

1. It would still sell like crazy even with the expensive price

2. Release them with the weak yen in mind, and hope it would get better so they can gradually lower the price

3. Take the loss and sell it cheaper in all regions

4. Region lock, and sell the console "cheaper" in Japan

5. Focus on other markets/regions more to account for the less JP sales

6. Release with a couple of games bundled with the console

7. Sell parts separately to cut the price like the joycons, dock, charging cable etc.

8. Keep supporting the current Switch for another generation

9. Give up on hardware all together

10. Give up on traditional gaming consoles and focus on something new, the next Wii/DS

11. Give up on gaming and focus elsewhere

I think 2 is the best choice here, the hardcore fans are the ones that typically buys them first anyways, and they don't care about the price as we saw with the PS5 and scalping issues. It can also look better when price is decreased later on. The casuals/kids can buy or play the current Switch in the meantime. However, if things don't get better, Nintendo might have to act accordingly. 9 is honestly the safest move, but it's hard to believe Nintendo would take this action and it wouldn't be this gen considering how much R&D cost would go to waste.

Last edited by Shatts - on 29 August 2023

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So what you are saying is that its gonna be much cheaper than we all assume.



Jpcc86 said:

So what you are saying is that its gonna be much cheaper than we all assume.

Not really, I'm just wondering how Nintendo would tackle this problem. Selling it cheaper is an option, but there's only 3 solution to that. One is selling at a loss, the other is making a weaker hardware than we are expecting or selling some parts separately.



Shatts said:
Jpcc86 said:

So what you are saying is that its gonna be much cheaper than we all assume.

Not really, I'm just wondering how Nintendo would tackle this problem. Selling it cheaper is an option, but there's only 3 solution to that. One is selling at a loss, the other is making a weaker hardware than we are expecting or selling some parts separately.

That's guaranteed, it's Nintendo. And for us a weak Yen is only good news? We buy it in Dollars and Euros, which convert to more and more Yen as the Yen gets weaker. The Yen is also getting weaker against the Yuan but at a slower rate. Manufacturing price will go up for Nintendo, yet they still get more Yen for your buck.

2022 1,000 yen was about 550 Yuan, Now 1,000 yen is about 490 Yuan. (-11%)

2022 1 Euro was about 130 Yen, Now a Euro is about 158 Yen (+21.5%)
2022 1 Dollar was about 114 Yen, Now a Dollar is about 145 Yen (+27.2%)



The chip is already set, you can't just change the chip at this point like swapping out fries for onion rings or something. 

They will simply adjust the price for Japan according to what they feel is the best route, we are still a year out as well, the yen could be in a different place in a year.



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It's not gonna be $400+ so that isn't really a worry. Nintendo ain't gonna make a system that pricey.
In Yen, maybe it's a bit higher than normal cuz of weak Yen, but that's not a huge issue. They aren't gonna be changing anything significant about the system at this point. So there's really only a couple options, don't do anything (ie priced $350 - $399 (honestly more likely closer to the low end of that) in USD and therefore Japanese are paying more than they are used to because of weak Yen, or give Japanese a discount while the Yen is weak. I doubt they'll give Japanese a discount, so everything will just be priced $350 or perhaps a little bit more everywhere, with Japanese having to pay a bit more than they are used to because of the weak Yen.

I don't really see how this is a problem.



They'll just adjust the yen pricing accordingly. The Switch originally launched for cheaper in Japan than in USD. I think it was $269 or so in equivalent. In the UK the Switch was more expensive, at around $350 or so equivalent at launch.

Basically, the pricing isn't always the same across the board. That's likely to happen again.



I think they should go with option 11. They should get out of gaming completely, and start making sewing machines. Due to the week yen, I don't see any other reasonable path forward for Nintendo.



Soundwave said:

The chip is already set, you can't just change the chip at this point like swapping out fries for onion rings or something. 

They will simply adjust the price for Japan according to what they feel is the best route, we are still a year out as well, the yen could be in a different place in a year.

Some times you can.

Tegra Pascal is pin compatible with Tegra Volta on the Jetson boards.

Literally just solder and swap the chips.



--::{PC Gaming Master Race}::--

I think people are going to be disappointed. I don't see a ps4 hybrid system from Nintendo. I don't even know what a ps4 in handheld mode looks like from a battery perspective.



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