""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," Nintendo President Shuntaro Furukawa told investors in a recent Q&A. "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." He continued, "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.""
""While fans flooded Nintendo livestream chats with demands that the company lower its prices, $450 ended up being squarely in the middle of what experts had predicted. It was higher than the aggressively low end of $400 and under the worst-case scenario of $500. Some analysts also suspected that the price tag included a cushion to absorb some of the blow from Trump's tariffs on countries where the console is manufactured, like Vietnam.""
Nintendo expects to maintain current hardware profitability unless significant external changes, such as tariff shifts, occur. The company recognizes rising material costs but anticipates cost reductions through ongoing mass production of Switch 2. Nintendo does not expect recent material cost increases to greatly impact profitability and plans to sustain existing profitability levels. The Switch 2 launched at $450 and became the fastest-selling console at launch. Experts had predicted prices between $400 and $500, and some analysts suspected the $450 tag included a cushion for potential tariffs. Initial manufacturing produced ample stock, avoiding reseller-driven scarcity.
Read at Kotaku
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