While both Sony and Microsoft have had to raise the prices of their respective consoles in the US due to the country’s import tariffs, Nintendo doesn’t seem to have any such plans for now. In a recent earnings report, president Shuntaro Furukawa said that the company was going to try and maintain its current level of profitability for hardware, which indicates that prices won’t change, unless there are “significant changes” in the world, like changes made to tariffs.
Furukawa said this in response to a question raised during the Q&A session of the earnings report about the increase in component costs and how this will affect the Nintendo Switch 2. He noted that there are areas Nintendo is investigating that could see cost reductions in response to rising component pricing.
“We believe that we’ll be able to maintain the current level of profitability for hardware for the time being unless there are significant changes in external factors, such as a shift in tariff assumptions, or other unexpected events,” said Furukawa. “While we are aware that the costs of various materials are rising, we also anticipate some areas where cost reduction may be achieved for Nintendo Switch 2 through ongoing mass production efforts.”
“Therefore, currently we do not expect the recent rise in material costs to greatly impact profitability. We will continue our efforts to maintain the same level of profitability as we currently have.”
Furukawa also spoke about the sales momentum that Nintendo has been seeing with the Switch 2. When asked about whether the company is exploring options to grow the new console’s user base beyond the currently-targeted pre-existing customers of the original Switch, he noted that the company expects to remain in that same phase for the time being. At the same time, however, the company is also working to broaden its market by appealing to new consumers as well.
“For now we expect to remain in a phase where it is primarily existing Nintendo Switch owners who will purchase Nintendo Switch 2,” he said. “But at the same time, we will work to convey the appeal of Nintendo Switch 2 to new consumers through the release of software titles and other means.”
As for the differences between early adopters and late customers, Furukawa noted that sales of the Switch 2 between early buyers of the original Switch and late buyers have been pretty even.
Elsewhere in the Q&A, member of the board, executive fellow and representative director Shigeru Miyamoto also commented on the success of the Mario Kart franchise, especially in the company’s more recent console generations. When asked whether there is a possibility that a game could come out on the Nintendo Switch 2 that could surpass the Mario Kart franchise in sales, Miyamoto said that, while Nintendo allows developers freedom to try new ideas, there is a chance that it will never be surpassed.
“One thing that is interesting about Nintendo is that it’s okay to try anything,” said Miyamoto. “On the other hand, even if something like that happens, Mario Kart would probably continue to sell well in that undertaking as well, so it may never be surpassed!”
