Nintendo has joined Microsoft in responding to This week’s shock PlayStation 5 price hikeand said it had “no plans” to similarly bump up the Nintendo Switch’s cost.
In a statement issued to Eurogamer this morning, Nintendo confirmed it had “no plans to increase the trade price of its hardware”.
The response goes further than that of Microsoft’s, which last night noted Sony’s dramatic decision by simply stating it was keen to “offer our fans great gaming options”, before reiterating the Xbox Series X and S’s launch price point.
Nintendo’s full statement includes a quote from company president Shuntaro Furukawa, given during its June AGM, and then reiterates that Nintendo’s prices are staying put for now.
Here’s that statement in full:
As our president Mr Furukawa stated at the 82nd Annual General Meeting of Shareholders in June:
‘While we cannot comment on pricing strategies, we currently do not have any plans to change the price of our hardware due to inflation or increased procurement costs in each country. We will determine our future pricing strategies through careful and continued deliberations.’
“While the final price to consumers is always determined by retailers, as Mr Furukawa stated, Nintendo has no plans to increase the trade price of its hardware.”
Yesterday, Sony stunned the industry by announcing an impressive price increase for its PlayStation 5 base model and discless version, which will now both cost £30 more in the UK and €50 more in Europe.
Elsewhere around the world, Japan, China, Australia, Mexico and Canada will also see price rises. But the US will not see a price rise at this time.
PlayStation boss Jim Ryan blamed the price rises on “high global inflation rates, as well as adverse currency trends, impacting consumers and creating pressues on many industries” and said it had been a “difficult decision”.
The move was widely criticized, especially at a time when many are facing increased economic hardship.
Speaking to Eurogamer, analyst David Gibson of MST Financial explained that Sony’s decision was due to foreign exchange costs.
“Sony would have budgeted on certain cross rates versus its costs in dollars,” Gibson explained, “but the pound and other currencies have all moved because of rising interest rates.
“Yes, freight rates have gone up but the semiconductor market is improving and DRAM prices are falling.
“The fact Sony didn’t change US prices shows how it’s largely a forex situation versus costs in dollars, and not inflation.”
However, reacting to the news yesterday, industry analyst Piers Harding-Rolls suggested that – however unpopular this move might be – the changes were unlikely to dent pent up demand, or Sony’s bottom line.