Sephiran said:
I think the main problem for Switch 2 is that next year it will likely see a price increase due to tariffs as well as RAM prices increasing due to AI, its already a hard sell for the general public at the current price so the price increase for Switch 2 next year will for a long time heavily impact its sales potential.
I think the Switch 2 will likely become a new version of 3DS, mega popular in Japan but set for steep decline in Europe and the US. |
Facts. Since the moment the Switch 2 price was non-announced, that has been the noose around it's neck everywhere except Japan where it's actually priced very well, and which also happens to be the only region where the Switch 2 is still selling great half a year after launch. Outside Japan, Switch 2 has in just half a year gone from record breaking sales to quite poor numbers. Lack of any sort of a serious system-selling games for the first year of course didn't help either. The only reason the sales still look is great overall is because the first couple months were record breaking, the sales the past few months have been down right pedestrian considering there are no supply shortages like Switch had.
We already know Nintendo no longer thinks it ever needs to do price cuts on anything, but if chips are getting more expensive due to demand from AI, if Nintendo actually adopts the PS/Xbox strategy of raising prices instead of lowering prices as a system ages, things are only going to get worse for the system.
This has all been obvious since early April, though plenty of people chose (and still choose) to turn a blind eye and claim everything is perfect simply because the system had record breaking launch sales purely off of Switch-successor hype. But now we see the obvious result of Nintendo's next gen strategy, as Nintendo's weakest region (Europe) is starting to reject the system and go heavily toward the PS5 now that people see Nintendo lost its vision this gen, and the US's entire political/economic situation continues to rapidly deteriorate under the authoritarian regime making people apparently wary to buy any of these high priced systems.
Switch 2 is absolutely starting to look like it is indeed in danger of being mega popular in Japan while declining sharply everywhere else. And this is largely on Nintendo choosing to jack up the prices on everything AND not have a serious lineup ready for the system. Of course the insanity of the US and the AI boom causing stuff to become more expensive is out of their control, but the point is they intentionally put themselves in a very weak position and so these two outside factors are gonna cause real damage which wouldn't have been there if they hadn't been so greedy after the success of the Switch. It happens every time, Sony after the PS2, Nintendo after the Wii and the DS and the Switch. These companies have a hugely popular system and they think they are invincible that inevitably lead them to make seriously bad decisions the following gen that lead to sharp declines.