About all the materials that Nintendo sells becomes a little more expensive in the United States – with the exception of switch 2.. This includes all the models of the original switch, a bunch of accessories and even an alarm clock activated by the movement. The changes were made before sweeping the Trump administration’s prices which should come into force in August, and they show that Nintendo is based on a strategy it has used in its activities: largely avoiding risks. The increase in the price of a new console is not the best look, and therefore the company tries to recover part of this money in a safer way, without playing on the success of its most important product.
Earlier in the day, Nintendo announced that these new prices would come into force from August 3. The real increase has not yet been announced, but a list since the target is paid suggests that console increases could vary from $ 30 for the basic switch model at $ 50 for the OLED version. This decision follows similar increases in Canada, and Nintendo says they are implemented “according to market conditions”, which talks about companies for prices. The Switch 2 is notably absent from the list of affected products.
So what is the point of increasing the price of old consoles and alarm clocks? Nintendo is sadly famous for being a fiscal conservative business, and he understands that, like everyone else, he will be assigned by the next wave of prices. But Nintendo also knows that the increase in the price of switch 2 – which was already controversial – less than two months after the launch would not be well lowered. The first days of the life of a console are very important to help establish a reference audience which a company can then build. And the Switch 2 is on a good start. This morning, the company announced that it had sold nearly 6 million Switch 2 units since its launch in June.
It seems that the company has decided that it is worth eating all the additional costs that this means a successful launch for the Switch 2 – which includes the imminent tariff of 20% on imports of Vietnam, where many consoles are produced. But the same thing cannot be said for the switch or the original products like Alarmo. At this stage, sales of the first switch are not also an integral part of Nintendo’s success, and therefore the company is comfortable to increase its price in response to its own costs. The original switch is less important now but it is not insignificant; Nintendo noted in its most recent income that “Nintendo Switch’s request remained after the launch of Nintendo Switch 2 in June”. And it therefore seems that Nintendo tries to nickel and make its way to invent part of what he will lose through the prices with which he is forced to manage, all without disturbing the momentum of Switch 2.
New price increases are simply a way to apply this way of thinking about Trump’s current chaos. That said, they could also end up being a gentle launch in a way, a way for Nintendo to assess the reactions before doing something more radical. Currently, he decided that it was worth eating these costs, but it may not always be true to move forward. As he noted in today’s announcement, “price adjustments may be necessary in the future”. We do not yet know what it might look like, but we know that Nintendo will do everything it can to avoid disturbing the chances of success of Switch 2.
