Nintendo Talks Switch 2 Demand And Gives Small Update On Pricing

Some new details about Nintendo's plans for the Switch 2 launch have been revealed in the company's latest earnings briefing, with president Shuntaro Furukawa revealing that Nintendo is preparing for a high level of demand for the new console. The executive also discussed Nintendo's philosophy regarding pricing for the Switch 2 and confirmed there are no plans right now for a Switch price cut.

While answering shareholders' questions about the launch, Furukawa revealed that Nintendo is anticipating a high level of demand for the new console. "As of now, we are taking the risk and proceeding with production to meet as large a demand as possible," Furukawa said, adding that Nintendo would be estimating the initial demand for the console based off the reaction to its April 4 Switch 2 Nintendo Direct, as well as the response to its hands-on Switch 2 Experience events.

Nintendo is also making preparations in case it needs to quickly ramp up production of the consoles, as was the case when the original Nintendo Switch experienced supply issues in 2020. "As was true with Nintendo Switch, we believe it will not be easy to rapidly increase production capacity," Furukawa said. "So based on our prior experience, we are making preparations to be able to respond as quickly as possible."

The company seems well-positioned to meet demand this time around, with an industry analyst revealing that Nintendo has lined up a supply chain to avoid another chip shortage. Nintendo has also said that having sufficient supply is a key part of its strategy to discourage scalpers--although it has run into a different issue with scalpers, with people attempting to sell off their non-transferable Switch 2 Experience tickets on eBay.

The earnings call also included a question about the Switch 2's pricing. While Nintendo hasn't revealed a price or even a ballpark range for the Switch 2, Furukawa has explained some of the factors the company has to consider when it comes to pricing. As well as inflation and exchange rates, which Furukawa notes have "changed significantly" since the original Switch released in 2017, it also needs to "consider the price range that consumers expect for Nintendo products."

"I cannot tell you a specific price for Nintendo Switch 2 at this time, but we are taking various factors into account," Furukawa said, adding that the company has no plans to change the price of the original Nintendo Switch hardware.

While Nintendo is staying tight-lipped on the price, analysts have estimated that the console will cost around $400. The original Nintendo Switch launched for $300 in 2017, though when adjusted for inflation is equivalent to around $388, making a $400 price point for the Switch 2 closer to its predecessor than it first appears.

Until we get more information about the Switch 2 in the April 4 Nintendo Direct, check out everything we currently know about the upcoming console.