The inflation and production cost problem has hit many tech companies around the world. One of them was the Nintendo Switch, which has an important place in the game console world. The company has been having problems with the cost of production lately. Nintendo president, on the other hand, announced that he has no plans to increase the price of any products despite these costs.
Nintendo wants to avoid pricing people
It was revealed earlier this month that Switch sales fell 23 percent due to a shortage of semiconductor components. In the 2022 and 2023 fiscal years, it is estimated that the profit will decrease by 29 percent. Nintendo president Shuntaro Furukawa has announced that the company has no plans to raise prices despite rising costs.
Despite this, Furukawa stated that Nintendo wanted to “avoid pricing people”. He said that there will be no price increase even though they face high costs to produce the hardware. He also stated that he has no plans to adjust the price of the Nintendo Switch to “cover increased production and shipping costs.”
Talking about increasing production after the production materials shortage, Furukawa said, “We are on the way to recovery from the second half of this summer.” He added that things are on track for Nintendo to sell 21 million Switch units this fiscal year. But he said things ahead are uncertain.
“In order to offer unique entertainment to a wide range of customers, we want to avoid overpricing people. Our competition is the diversity of entertainment in the world, and we always consider pricing in terms of the value of the entertainment we offer.”
Furukawa also announced that the OLED model of the Switch will continue to be the least profitable Switch. He also shared that this does not help increase costs for shipping not only by air but also by sea. He used the following words about what can be done:
“We think about what we can do. The weak yen can be seen as an advantage for Nintendo because such a large part of our sales come from abroad. But our overseas promotion and personnel costs are also increasing. To counter this, we are buying more inventory in currencies.”
Regarding the ongoing shortage of semiconductors, Furukawa believes the situation will improve in the last half of this summer. However, he states that it is not possible to say anything clear about the future.
So, what do you think about the Nintendo price increase? Don’t forget to share your views with us in the comments!
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