The CEO of NintendoShuntaro Furukawa confirmed that the company will not increase the price of its flagship console, Nintendo Switch. The president made this statement during the current situation in the world, where production costs have increased.
“We are not considering that at this time, For two reasons. In order to offer unique entertainment to a wide range of customers, we want to avoid putting excessive prices on people. Our competition is the variety of entertainment in the world, and we always think of prices in terms of the value of the entertainment we offer”, assures the president of Nintendo in interview with nikkei.
Furukawa also indicates that they do not want to spoil the great moment they have by raising prices. “Our products also include software. Nintendo has sold over 100 million Switch units so farand it’s important to keep the momentum of our business overall“, Add.
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Also, the CEO of Nintendo points out that not all versions of the Switch are so profitable. “For now, our OLED model will continue to be less profitable than the rest of our models. No doubt, the costs have increased for shipping not only by air, but also by sea.. We are thinking about what we can do”he asserts.
Finally, Furukama states that they will try to reach their annual goal without a price increase for the Nintendo Switch. “It is in its sixth year since its release. All I can say is that we will try to keep sales at the same rate. Having successful software also gives the hardware a boost. We have a line of new games that will allow us to try to meet our sales forecast, including Splatoon [3] coming out in september and pokemon [Scarlet and Violet] in November”, he concludes.
In the second quarter of the year, Nintendo Switch sales fell 23%, amid shortages of semiconductors and other parts. Also, it is anticipated that the company’s earnings decrease by 29% at the end of the fiscal yearin March of next year. Despite this, the company expects to sell 21 million consoles by that date.