“We recognize that early adoption has some challenges to address, as the Nintendo Switch 2 is priced relatively high compared to the Nintendo Switch,” Furukawa said. “We are taking steps to bundle software with hardware to accelerate adoption in the first fiscal year, aiming to get off to the same start we did with our Nintendo Switch.”
Furukawa warned that investors should not be engrossed in the extreme demand for Switch 2 pre-orders. Due to the high price of the system, he said, “Even if there’s momentum around the launch, I know it’s not easy to maintain that momentum over the long term throughout the holiday season and beyond.”
Furukawa said the Switch 2 production capacity is “not a factor” in setting forecasts and is not a volatile economic situation. “The US tariff situation or the possibility of a recession had no effect
We also forecast our sales volumes,” he said.
He said he still makes the best statement from Nintendo in response to US tariffs, working on the assumption that the current tariff rate will last for the remainder of the fiscal year, “it will have a negative impact of tens of millions of yen at profit level.”
“Our basic policy is to recognize tariffs for any country or region as part of the cost and incorporate them into the price,” he said. “But this year marks the launch of a new dedicated video game system for the first time in eight years. So, given our unique circumstances, our priority is to maintain the momentum of the platform, which is very important for our dedicated video game platform business. We will quickly expand the installation base of new hardware. As a result, the assumption of changing tariffs takes into account what kind of price adjustments are appropriate.
To translate this from CEO speaking: Nintendo usually slaps the cost of tariffs on the price of the hardware, but in this case it didn’t do so as I want to sell as many Switch 2 as possible. As things evolve, pricing changes are not ruled out (but probably not).
The entire Q&A is worth reading. Just for the strange sight of a business leader, please patiently explain and reexplain his insatiable investor. only It will be one of the fastest consoles ever. This is clearly a terrible disappointment for them. Capitalism!
