The big story surrounding Nintendo’s Switch 2 that seems to permeate every announcement and new detail are the prices. A lot of the attention has mainly gone to Mario Kart World being $ 80, but everything else has come under scrutiny too.
In particular, gamers were shocked to find that the Switch 2 was retailing for $ 450 in the US. As some gamers have pointed out, many consumers got used to Nintendo offering the budget option that distinguishes itself from the premiums of the PlayStation and Xbox consoles. Even as it’s exciting to see that the Switch 2 seems poised to now play the same games as its peers in the ninth console generation, many of these gamers, and even fans, are questioning Nintendo’s decision.
Content creator Nintendo Prime made a surprising claim today on Twitter. He said this:
“Double Jump Games, who is getting 9 Switch 2 Units to sell, noticed in the order that Nintendo is basically making nothing in the US per unit. They make $4 per unit sold, Nintendo’s costs basically match what it costs to be here.
So next to no profit margin.
(The $4 is the retail profit. Nintendo is selling selling at cost and make nothing)”
Before we discuss the rumor, let’s verify what we can. Double Jump Video Games is a real store, located in Vancouver, Washington, as they indicate on their website. From what we have seen, they have yet to comment on Nintendo Prime’s claims on social media. They have advertised that they are taking pre-orders for Switch 2 games but not the console itself.
It is credible to some degree that Nintendo Prime got to talk to the people at Double Jump Video Games, and they shared this information. We don’t know about confidentiality agreements, but this could easily slip in casual conversations. Subsequently, it’s not unusual for video game consoles, and other gaming hardware, and consumer goods in general, to be sold at low margins.
Now, we already expect a lot of gamers won’t accept this at the face of it, in spite of how credible it is. Given the demonstration of the console’s power, all the added capabilities, and the fact that this is a new product being introduced in a challenging business environment, one cannot argue with the mindset of a gamer who’s convinced everything that sells cheap makes the most money and is the best for all consumers.
As we’ve seen in the massive rush for Switch 2 pre-orders, not everyone actually thinks like that, even if the internet may want you to believe otherwise. But those of you who are willing to take this rumor seriously understand we may be seeing a true paradigm shift happening within Nintendo. If former PlayStation executive Shuhei Yoshida believes Nintendo is ‘losing their identity’, he may have a point.
Maybe some fans will take a while to accept and acknowledge it. But in the same way that the late beloved Satoru Iwata changed how Nintendo was as a company after the retirement of the also dearly departed Hiroshi Yamauchi, Shuntaro Furukawa is taking Nintendo in a new direction once again. And for everything the company owed Iwata in the conception, design, and planning for the Switch, there’s a clear line that divides when Furukawa and Nintendo was still following Iwata’s lead, and when they made their own decisions to secure Nintendo’s future.
Truthfully, we don’t know if we’ll ever get confirmation of this rumor at all. But if it is true, it’s an indication that Nintendo has decided to jump back in to competing with PlayStation and Xbox head on, and competing to get third party games. Maybe this will all turn out to be a mistake, or maybe it will be the biggest success the industry has ever seen. But whatever happens, it will now be on today’s Nintendo, and their new leader, Furukawa.
