Switch 2 will be 'relatively cheap' and cost less than $499, analyst predicts

Nintendo's new Switch successor is expected to cost less than $499, one Japanese securities analyst has predicted.

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Similar to its predecessor, Nintendo's upcoming Switch 2 console may not be fixed at a more premium price point. Although the Switch 2 is expected to deliver higher-end 4K visuals via a new DLSS-enabled NVIDIA Tegra T239 chip, that doesn't necessarily mean the system will be sold at the upper $499 range where the PS5 and Xbox Series X currently sit.

Toyo Securities analyst Hideki Yasuda thinks it's more likely that Nintendo will price the Switch successor below $499, but by how much remains to be seen. Yasuda recently published a research note to investors (via financial site Kabutan) that laid out his predictions for the Switch 2 console.

"At this point, no details have been announced about the successor to the 'Switch,' but various reports suggest that it will be released in the first half of next year, will be relatively cheap in dollar terms (less than $499?), and will have performance that is lower than the "PS (PlayStation) 4 Pro." Since

"$499 is about 75,000 yen when converted at 150 yen to the dollar, many people in Japan will have doubts if this is said to be cheap.

"However, just for reference, a McDonald's Big Mac in the United States costs $5.69, which is 853 yen at 150 yen to the dollar, and 682 yen at 120 yen to the dollar. Compared to 480 yen in Japan, it is 1.77 times the price at 150 yen, and 1.42 times the price at 120 yen.

"Outside of Japan, it would not be strange to feel that the 150 yen to the dollar is about 60% of the dollar price, and even at 120 yen it would feel about 30% cheaper. Considering these things, the successor to the 'Switch' is likely to stimulate inbound demand under these circumstances."

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The Nintendo Switch family of handheld-and-console hybrids has currently sold-in over 143 million units worldwide since launching in 2017.

While Nintendo owes a lot of the Switch's success to the cheaper $299 price point (not to mention the novel transforming nature of the system), consumers have shown they are willing to pay extra for more premium features. Of the total amount of Switch shipments, the more higher-priced $349 Switch OLED has made up approximately 18% of these shipments, or 25.58 million.