The price increase in tech is making a lot of noise. Nintendo would refuse to increase the price of its console, at least internationally.
Will game consoles have to increase in price? The rest of tech seems to be going this way, subscriptions upto the next iPhone 14 Pro passing through the Meta Quest.
With a business model close to selling at a loss for the consoles themselves, manufacturers have very little wiggle room if component prices rise. But Nintendo, Sony and Microsoft seem to be holding their own until then.
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Nintendo is the latest to officially respond to analysts’ questions. C’est the Nikkei Asia who was able to question Shuntaro Furukawa, Nintendo’s big boss, about a possible price increase. The man directly ruled out this idea, indicating that he did not want to exclude part of the clientele because of the price.
To whom will increase the first
None of the three console makers want to be the first to announce price increases for consoles launched between 2017 and 2020, in a completely different economy. Such an announcement could break the sales momentum, and each manufacturer benefits from a great momentum on their latest consoles. The market being very competitive, it is out of the question to offer an advantage of this type to a competitor.
Still, if Nintendo rules out an international price increase for its Nintendo Switch, we cannot be so sure in France. Indeed, the manufacturer does not communicate a recommended retail price in our territory, so it is the merchants who publicly set the price.
However, with the exchange rate at parity between the dollar and the euro, we could see a nice rise in the price in euros over time. This risk concerns all three game consoles. When Sony denies a price increase for the PS5 internationally, that says nothing about the possible price in France.
Nintendo relies on its games
Over 111 million Nintendo Switch have been sold to consumers. This huge fleet of consoles, Nintendo can continue to exploit it with its future titles with great sales potential. We think of Splatoon 3scheduled for the start of the school year and Pokemon Scarlet and purple planned before the end of the year.
Games from other developers like Dragon Quest Treasures, At Harvest, Mario + Rabbids Sparks of Hope et Disney Dreamlight Valley are also sure to find a small success on the Nintendo console.
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