According to Nintendo President Shuntaro Furukawa, the company has no plans to increase the price of the To change.
Furukawa shared this information in an interview with Nikkei. He said demand for the Switch currently exceeds supply, but that doesn’t mean Nintendo will raise the price. The company wants to “avoid charging people” and “keep the momentum going across our business.”
Furukawa’s comments came while talking about Switch hardware production as well as sales targets. You can read the brief interview below.
How is Nintendo doing with semiconductor sourcing?
With the cooperation of various business partners, we have been on track to improve since the second half of this summer. But when it comes to our sales forecast of 21 million units for the fiscal year to March 2023, we only have a clear production outlook for this year. Beyond that, things are uncertain.
I cannot say precisely what is missing. Nintendo will continue to sell three [Switch] models: the standard model; the Switch Lite with reduced price, size and features; and the OLED model. We’ll work out the best strategy as we go. We are doing our best to source high quality products at an appropriate price for the next few years.
Are you losing chips and other components to manufacturers with more expensive products, like automobiles?
Keeping prices low is no problem for us when it comes to parts supply. The problem is that demand exceeds supply.
Are price increases an option?
We are not considering this at this time, for two reasons. In order to provide unique entertainment to a wide range of customers, we want to avoid overrating people. Our competition is the variety of entertainment in the world, and we always think about pricing based on the value of the fun we provide.
Our products also include software. Nintendo has sold over 100 million Switch units so far, and it’s important to keep our overall business momentum going. Generally speaking, a weak yen makes domestic Switch sales less profitable.
Can Nintendo absorb the rising costs of materials and shipping?
For now, our OLED model will continue to be less profitable than our other models. Costs have undoubtedly increased for transportation not only by air, but also by sea. We think about what we can do.
The weak yen can be seen as an advantage for Nintendo, as a large portion of our sales come from overseas, but our overseas promotion and personnel costs are also increasing. We are making more inventory purchases in foreign currencies to counter this.
Can you meet your Switch sales target for this fiscal year?
It is in its sixth year since its launch. All I can say is that we will try to keep sales at the same rate. Touching software also gives hardware a boost. We have a range of new games that will allow us to meet our sales forecast, including Splatoon 3 which will be released in September and Pokemon [Scarlet and Violet] in November.