Nintendo president Shuntaro Furukawa expresses his desire to “want to avoid pricing people out,” and how important it was that the portable home console’s pricing remained competitive against other products that consumers turn to for their entertainment.
“We’re not considering that at this point, for two reasons. In order to offer unique entertainment to a wide range of customers, we want to avoid pricing people out. Our competition is the variety of entertainment in the world, and we always think about pricing in terms of the value of the fun we offer,” Furukawa explained in an interview with Nikkei.
“Our products also include software. Nintendo has sold more than 100 million Switch units so far, and it’s important to maintain the momentum of our overall business. Generally speaking, a weak yen makes domestic Switch sales less profitable.”
When asked whether Nintendo would be able to absorb the rising costs of materials and shipping, he responded: “For the time being, our OLED model will continue to be less profitable than our other models. Costs have undoubtedly increased for shipping not only by air, but also by sea. We’re thinking about what we can do.
“The weak yen may be seen as a benefit for Nintendo, since such a large share of our sales comes from abroad, but our overseas promotional and staff costs also go up. We’re making more inventory purchases in foreign currencies to counter that.”