By Above the Switch, yet beneath its rivals
An analyst has forecasted that Nintendo will “probably” price the forthcoming Switch 2 at $399.
Joost van Dreunen, author of ‘One Up – Creativity, Competitors, and the Global Economy of Video Games’ and co-founder of the Nielsen-owned video game market research firm ‘SuperData Research,’ has shared his rationale for this forecast in his latest ‘SuperJoost Playlist’ newsletter.
In this newsletter, he mentions that a price of $399 would effectively navigate the space between affordable and premium pricing, placing it below its direct competitors yet above the original Switch.
“Based on current market trends and platform positioning strategies, Nintendo is likely to price the Switch 2 at $399. This represents a significant psychological barrier that balances high-end hardware ambitions with mainstream market accessibility.”
“At this pricing level, Nintendo would maintain its historical profit margin on hardware while situating the Switch 2 distinctly beneath competing high-end gaming consoles, yet above the launch price of the original Switch. It indicates a noteworthy technical improvement without alienating its core family audience.”
He further highlights that during a period where a potential economic downturn might present certain challenges, Nintendo may be prioritizing platform sustainability over immediate hardware sales. Consequently, its emphasis on promoting backward compatibility and an effortless migration from the original Switch likely signifies the company’s intent to focus on player retention and brand loyalty over short-term console sales.
Nintendo’s ability to sustain premium price points for its platform over multiple years indicates that it does not need to rely on Nintendo Switch Online as heavily as Sony and Microsoft do with their respective subscription services. With the Switch 2 expected to support backward compatibility, Nintendo seems to be aiming to maximize platform revenue and digital engagement.