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Will Nintendo Finally Drop the Switch Price?
Khushrenada:
I'm not sure there will be a price drop until maybe after the Switch 2 is out at this point and that would be to mainly clear out stock. 3DS hardware sales pretty much dropped off after Switch came out but they didn't discount the system at the time. I think they came out with the NEW 2D designs after Switch also. Can't recall if those were cheaper or not. In any case, they soon cut production of 3DS and it was pretty much vanished from store shelves by middle of 2019. Like a year and half after Switch release. But I don't recall any kind of firesale or impressive discount to clear out 3DS stock. Surprisingly, Nintendo might have been able to sell more 3DS systems after all if they'd kept making them for another year as the early COVID lockdowns saw a spike in gaming sales and there was suddenly demand for the system again.
Then Nintendo refreshed the Switch with a better battery and an OLED screen. With inflation that came during and after the pandemic, I think that, along with these better parts, has probably contributed to Nintendo holding the line with the price of the system. You can't really say the price has been a hinderance to sales considering how much hardware Nintendo has sold for this system and the fact that they'll probably be able to go a full eight years without having to replace it sooner or upgrade it with a NEW Switch type system. At this point, I just don't think Nintendo sees any incentive to lower the price unless they decide they do want to beat the PS2 record and make it a priority.
At the same time, I do think the age of the Switch's tech is now the bigger factor in determining how much more the system will sell. It is falling behind in the types of chips and processors that current phones and tablets have as well as the current generation systems. Not that there's much need to match the PS5 power considering so many third parties keep releasing games for both PS5 and PS4 because PS5 software sales continue to struggle. As long as Switch 2 can match (but preferably surpass) PS4 capabilities then third party support should still be there for the next system. When Switch 2 comes out, I'm not sure how many people will be looking for a system that's getting kind of dated tech-wise aside from maybe having a spare back-up system at this point or to access the Switch library at a discounted price (if it does get a price cut). I think it will be a pretty quick decline as people jump onto the next system. Not to mention, there's still stuff like GameStop where they might offer a discount on the Switch 2 if you trade in your old Switch. In that case, the market could soon be flooded with old used original Switches likely being sold at a discount that Nintendo would then have to compete against with their remaining stock. I'm almost wondering if we might see the Switch stock dry up by the end of December and the holiday season. In which case, it will never have had a price cut.
The rumor a few months back was that Nintendo decided not to launch the Switch 2 this year and wait until next year in order to make sure they had plenty of hardware at launch to meet demand and hopefully deter potential scalpers. If they're stockpiling hardware for the next system then I feel they'll want to make sure they won't be stuck with a bunch of original Switch hardware at this time. This is a company that is usually being conservative in their estimates for demand as seen with Amiibo, NES/SNES mini-consoles, special editions, etc. If they are going to go gung-ho with the Switch 2 and have like 8 million systems at launch then I could see them wanting to take a serious look at how many more OG Switches they want to keep manufacturing or have on the market and questioning how much demand may still be there when they unveil the Switch 2.
BeautifulShy:
--- Quote from: NWR_insanolord on July 02, 2024, 11:35:00 PM ---We don't have any real info on that, but it wouldn't surprise me if it's fairly early 2025, similar to how the Switch came out in early March. But with the Switch still selling well at the current price there's no real reason for Nintendo to drop it right now.
--- End quote ---
Historically, Nintendo releases consoles in November but I wonder since the Switch and Switch 2 are not typical standalone home consoles that has changed the timing of release. Plus as MK Ultra said, the older console stays on the market as the new console gains steam or until things balance out.
Khushrenada:
Is it historical still when you look at the last 14 years?
3DS was released in March 2011
Wii U in November 2012
NEW 3DS XL in February 2015
Switch in March 2017
Only Wii U was November. Perhaps NEW 3DS is a bit more derivative but I consider it a "NEW" hardware launch. ;) System variants have been all over the place but within July - October indicating that Nintendo does want to take advantage of holiday sales momentum with these different models:
3DS XL - August 2012
2DS - October 2013
NEW 3DS - September 2015
NEW 2DS XL - July 2017
Switch Lite - September 2019
Switch OLED - October 2021
With how well Switch sold from its March 3rd release date, I've always felt like Nintendo would try for that time of the calendar again in a "if it ain't broke, don't fix it" superstitious sort of attitude. I think it also would help with holiday sales momentum to release earlier in the year so that you get the initial sales rush from early adopters and then can get a second spike during the holiday sales and restock up for that time as well.
NWR_insanolord:
--- Quote from: Khushrenada on July 04, 2024, 03:16:27 PM ---Is it historical still when you look at the last 14 years?
3DS was released in March 2011
Wii U in November 2012
NEW 3DS XL in February 2015
Switch in March 2017
Only Wii U was November. Perhaps NEW 3DS is a bit more derivative but I consider it a "NEW" hardware launch. ;) System variants have been all over the place but within July - October indicating that Nintendo does want to take advantage of holiday sales momentum with these different models:
3DS XL - August 2012
2DS - October 2013
NEW 3DS - September 2015
NEW 2DS XL - July 2017
Switch Lite - September 2019
Switch OLED - October 2021
With how well Switch sold from its March 3rd release date, I've always felt like Nintendo would try for that time of the calendar again in a "if it ain't broke, don't fix it" superstitious sort of attitude. I think it also would help with holiday sales momentum to release earlier in the year so that you get the initial sales rush from early adopters and then can get a second spike during the holiday sales and restock up for that time as well.
--- End quote ---
I think your last point is a big part of it. Supply can be an issue with new consoles, and with a March launch you can get the die hards to buy in early, then build up a bit of a software base and more stock for a kind of "second launch" in the holiday season.
Kairon:
Just on the strength of the June Nintendo Direct, with new games in the Mario, Zelda, and Mario Party universes, I think Nintendo might be shooting to achieve their hardware sales goals with strong software propositions, not price drops. (I wrote about it after that Direct here.)
I mean, it isn't exactly something to brag about but they ARE still consistently outselling the XBox Series S/X consoles, and it would be awkward to release that fancy new Zelda Switch Lite at full price in September and then drop prices all around just months later.
I mean, I can't rule out that Nintendo will go gangbusters by dropping a price drop announcement in September, but they DID just have to answer a question in their Investor QA about having no plans to RAISE the price of the Switch (in Japan, due to the weak Yen making the Switch cost less there than other countries).
Additionally, a higher-priced Switch could be a good thing to have when the Switch 2 rolls around. If the Switch 2 is significantly more expensive, there's plenty of space for the Switch 1 to stick around and feel like it's all of a sudden "inexpensive" despite never dropping the price. Plus the Switch 2 could feel a little bit more justified because it's a whole new generation of system for only X dollars more than the (not price-dropped) last one. The psychological benefit could work in both directions, and the Switch could enter the cross-gen period without a price drop at all.
Frankly, if there's no price drop this year the Switch could end up outselling the PS2's lifetime totals without EVER dropping its main SKU price!
Obviously, Nintendo has got to have more insight into where the sales trends are indicating. They saw the precipitous drop of the Wii sales numbers before the Wii U came out, and they know the possibility for this to turn on a dime. I have to assume they're watching carefully to see if the Switch is in the same danger... though honestly with a June direct that was way more aggressive/confident than I expected it doesn't seem like it's in that same danger.
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