Sony announced yesterday that the price of the PS5 will increase in virtually every market where it is available, with the exception of the United States. The news caused surprise and immediate interest in the reaction of its competitors, who were quick to react. Microsoft has confirmed that the retail price for the Xbox Series X|S will remain unchanged, while Nintendo has opted to go the same way with the Switch.
As indicated by VGC the Japanese company said that does not intend to increase the price of its equipment. Nintendo’s UK subsidiary was consulted on the issue and responded by quoting Nintendo Chairman Shuntaro Furukawa’s remarks at a June shareholder meeting.
Although we cannot comment on pricing strategies, we currently have no plans to change the price of our hardware due to inflation or rising acquisition costs in each country. We will determine our future pricing strategies through careful and ongoing deliberation, the executive said at the time.
Nintendo added that while the final price of the Switch is determined by retailers, the decision remains the same not to apply a price increase. Clearly the photo puts more pressure on Sony and the PS5, but that doesn’t make them the bad guys either.
Global inflation uncertainty is hitting the tech sector hard. So, if this economic outlook persists, it remains to be seen how long Xbox and Nintendo can sustain the current prices of the Series X|S and Switch, respectively.
Nintendo Switch price won’t change
The decision not to increase the price of the Nintendo Switch is probably also related to the strategy to increase its sales. Let’s not forget that the marketing of the portable console was hit by the shortage of semiconductors. Furthermore, the Japanese target the holiday season to regain the market presence of their device.
A few days ago, the Asian firm decided to reduce the packaging of the Nintendo Switch by 20%. Thus, by having smaller boxes, it would be able to transport a greater number of units using the same logistics that it already has today.
In the case of Microsoft, the fact that the price of Xbox consoles is not increasing does not mean that the company is immune to inflation. However, the Redmond-based company relies on much stronger financial support than Sony can provide for the PlayStation. This allows Americans to bear the effects of inflation and absorb the costs that may be incurred in the production of their devices.
However, as stated above, the situation of Nintendo Switch or Xbox X Series X|S will always be tied to the scope of the current global economic situation.