Switch 2 will be priced with profitability and foreign exchange rates in mind

Nintendo's president tells investors that the Switch 2 console will be priced with consumer affordability and company profitability in mind.

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The original Switch was sold at a profit on day one and has maintained some level of per-unit sales profits since. Nintendo wants to replicate that success with the Switch 2. Analysts are predicting that Nintendo could produce up to 20 million consoles in year 1, but will anyone be able to afford the system?

Our data analysis shows that consumers are willing to pay more for premium hardware--in just 40 months, Nintendo shipped nearly 30 million Switch OLEDs, boosting the OLED's total hardware share to 19%. Comparatively, it took the base Switch over 90 months to achieve 92 million sales. This led us to believe the Switch 2 will release in 2025 for at least $399.

What does Nintendo say? The company isn't revealing price yet, that will come during the special Nintendo Direct showcase for the Switch 2 on April 2. But we do get some comments outlining the thought process from Nintendo executives.

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In a recent Q&A with investors, Nintendo president Shuntaro Furukawa said the Switch 2's pricing will take into account the dramatic shifts in the international exchange rates, which haven't been the kindest to Japanese firms over the last few years.

"We are aware that the exchange rate environment has changed significantly since the launch of Nintendo Switch. We also need to take into consideration the affordable prices that customers expect from Nintendo products. When considering product prices, we believe that it is necessary to consider these factors from multiple angles. Although we cannot disclose a specific price, we are considering various factors.

"At present, there are no plans to change the price of the Nintendo Switch hardware."