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GamesIndustry.biz
GamesIndustry.biz
· 4 months, 2 weeks ago • Sophie McEvoy

Nintendo clarifies hardware price rises were due to sustained component and market costs

Briefing

Nintendo is framing its hardware pricing changes as a response to costs that it expects to stick around, especially memory and other components, plus foreign exchange and oil trends. Furukawa said that if the pressure were temporary, Nintendo might have kept prices steady and leaned harder on productivity gains, but that no longer looked viable for hardware profitability.

For devs, the important part is that Nintendo is still running the classic platform playbook: grow the install base first, then convert that audience through software. Switch 2 has already sold 19.86 million units, beating both the original 15 million forecast and the revised 19 million target, while Nintendo is guiding to 16.5 million next fiscal year. Furukawa also pointed to titles like the Switch 2 edition of Animal Crossing, its free update, and Pokémon Pokopia as meaningful hardware drivers, which is a reminder that first-party software cadence still shapes platform momentum.

“We made the difficult decision to reflect a portion of our costs in the selling price.”

— Shuntaro Furukawa · Explaining why Nintendo raised hardware prices
At a glance
what
Nintendo says hardware price rises reflect sustained component, FX, and oil costs rather than a temporary spike.
who
Nintendo president Shuntaro Furukawa explained the decision during an earnings call Q&A.
when
The comments came after Nintendo's recent financial results; Furukawa said costs may affect this year and next year.
impact
Nintendo is still prioritizing install-base growth first, so software releases remain central to Switch 2 adoption and sales planning.
Signal Mixed

Strong sales, but pricing pressure may affect adoption and margins.

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