Nintendo Won't Raise Switch 2 Price Yet And May Never Have To

""We are working to secure stable supplies of memory components by holding discussions from a long-term perspective with our business partners," president Shuntaro Furukawa said this week. "As a result, the recent rise in memory prices did not have a significant impact on hardware profitability in the third quarter. In addition, we do not expect any significant impact in the fourth quarter.""

"Not satisfied with that ambiguity and uncertainty, Q&A members kept grilling Furukawa for more specifics. The company admitted that the recent spike in component prices "exceeds our expectations" but said that it's been stockpiling inventory and arranging long-term deals to absorb the shocks. Even if prices continue to rise into the summer, Nintendo can put off any painful pricing changes for a bit longer. But not indefinitely."

Nintendo is negotiating long-term agreements with suppliers and stockpiling memory components to stabilize supply and absorb price shocks. The recent rise in memory prices did not significantly affect hardware profitability in the third quarter, and no significant impact is expected in the fourth quarter. If component price increases persist into the next fiscal year, profitability may come under pressure. No decision has been made to raise the $450 Switch 2 price; any future pricing decision will consider the platform's installed base, sales trends, and the broader market environment. If component costs deteriorate significantly, the company will reassess market trends and respond accordingly.

Read at Kotaku