I meant people saving their money to buy more important things than video games, not Nintendo increasing their consoles' price 

Yep, you're right about Europe and Japan. But I do think that the Switch must not fall apart in any of the 3 major video game market if it wants a chance to pass PS2's record

I don’t think that the economy will cause the Switch to have a quick death. We saw that even through the first Trump presidency and Biden’s presidency the Switch sold well.

The economy can cause people to not buy things but family buy them for their children as a way to have fun. Fun is a priority (not the highest) in a family. And the older generations if they hadn’t already bought a Switch now they most likely won’t buy one until it’s death. Everything hinges on Switch appealing to the younger families and “big” families. 

If Nintendo wants they could lower the price of the Switch for its first official time once the Switch 2 launches as a way to appeal to the poorer 3rd world countries which put fun on the back burner of priorities.

There will of course be some sort of price drop for the Switch! There is a small chance for a Switch TV for 149€/$. New 2DS XL launched after the Switch!

Actually, Nintendo just raised their games' prices in the eShop in all the Latin America last week. Awful move, honestly

In Latin America game prices are usually higher because f.e. Nintendo do not have an official distribution center in Brazil! They need to import and thats quite expensive!

A Brazilian-produced version of the Nintendo Switch has been available since 2022. Electronics are expensive due to high taxes

The PS5 Slim version + 2-game bundle (Arrival and Ratchet) costs 4,200 BRL (~730 USD)
The Nintendo Switch base version + Mario Kart 8 bundle + 3 months of NSO costs 2,200 BRL (~400 USD)

However, the biggest issue is the exchange rate. Sony and Nintendo are japanese companies, and sell consoles in the range of USA, Europe and Japanese population buying power

The days when 1 USD = 2.5 BRL are long gone. The current exchange rate is 1 USD ≈ 5.7 BRL. Since 2015 (the last time the USD was below 3 BRL) the average wage has increased in line with inflation, but the exchange rate has made gaming consoles prohibitively expensive for most people

Yeah that's the dangers of a tariff wars it wreaks havoc on currency exchange on top of the taxes the actual products themselves out the box are affordable until these factors come into play.

Tomorrow’s Switch 1 focused Direct definitely has some bearing on this thread, specifically that Nintendo is continuing to view the Switch as a viable platform and pillar of their business strategy. No surprises, really, but a conformation of what many here have been saying.

Some are claiming this will be the final Switch 1 Direct, but I wouldn’t be so certain. Nintendo may decide to ride both of these horses for some time to come, or at least try. At the end of the day it will be the consumers who decide, of course.

I think now that Nintendo sees that there will be a different audience for its both consoles, that's why we'll have two separates Directs for two different audiences