Why the Switch 2 is US$450, according to Nintendo
Impact of Trump tariffs still being assessed
Nintendo is on the backfoot after online backlash over the US$450 price for its upcoming game console. Prices of Nintendo Switch 2 games also appeared to have increased to US$80 for the digital version and US$90 for the physical copy. It didn’t help that Nintendo Switch 2 Welcome Tour, a tutorial game that walks players through the console’s new features, doesn’t come free with the console.
So how did Nintendo justify the Switch 2 price? Well, Nintendo of America President Doug Bowser had talked to CNBC about the Switch 2 shortly after last week’s official reveal. In that CNBC interview released this week, he explained that the new console offers upgraded hardware specs, like a larger LCD screen with variable refresh rate, a new processor that supports 4K resolution, as well as new features like being able to use the new Joy-cons 2 like a mouse in games.
To be fair, the Switch 2’s US$450 price isn’t outrageous by modern standards. Take the Steam Deck gaming handheld, which starts at US$399 for the LCD version with 256GB storage. You get more with the Switch 2, such as a better display, a TV dock, and detachable controllers. Perhaps we’re simply used to game companies taking a loss on the console, especially since Switch 2 games are much more expensive than PC games.
In fact, Mr Bowser mentioned that Nintendo is trying to maintain some margins for the console, “even if they are slimmer than software”, and not rely on the typical loss leader model used in the industry. He also said that the US$80 price for the Mario Kart World game that’s launching with the Switch 2 is the “right pricing” based on the breadth, depth, and repeatability of the gameplay. He added that not all games will cost S$80. There’s no standard price, and it’s up to third-party developers to price their games accordingly. The Donkey Kong Bananza game that has also been announced is US$70, for example.
The CNBC interview also revealed that the tariffs announced by US president Donald Trump had not been factored into the Switch 2’s pricing. Nintendo has since paused US pre-orders while it assessed the impact of the tariffs. It seems likely that the price would only be revised upwards, it’s only a matter of how much.
Meanwhile, the price of the Switch 2 has yet to be revealed for Southeast Asian countries like Singapore, Thailand, Malaysia, and the Philippines. The console will only be available between July and September in these countries, after the US launch on June 5.
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