Nintendo has explained that the increase in hardware prices was attributed to ongoing expenses related to components and market conditions

Shuntaro Furukawa, president of Nintendo, addressed the decision to adjust hardware pricing, citing multiple market-related factors rather than a singular cause.

In a Q&A session after announcing their recent financial outcomes, Furukawa stated Nintendo's strategy for the Switch 2 remains focused on expanding its hardware user base prior to increasing software sales.

"If the increase in costs were seen as something temporary that would subside relatively soon, then we could have pursued other options"

He noted the ongoing rise in memory and component costs, along with other economic pressures, necessitating a reassessment of their pricing approach to ensure long-term business stability. Furukawa stressed the importance of a sound earnings framework by reflecting part of these costs in the hardware's selling price.

Addressing future unpredictability in component costs, Furukawa mentioned the potential for these issues to influence the company beyond the current year. He emphasized the need for adaptable strategies moving forward.

Nintendo reported Switch 2 unit sales hitting 19.86 million, exceeding both the original projection of 15 million and a later estimate of 19 million. Furukawa attributed this impressive start to the continued engagement with the existing Switch platform and the backward compatibility of the Switch 2.

The successful introduction of key software titles like Animal Crossing's Switch 2 version and Pokémon Pokopia played a significant role in bolstering the hardware's sales towards the fiscal year's end.

Looking ahead, Nintendo anticipates selling 16.5 million Switch 2 units in the next fiscal year, a projection informed by current sales dynamics and historical performance comparisons of previous consoles. Furukawa expressed confidence in the system's strong momentum.

He reiterated the significance of having desirable software titles to support user transition to the Switch 2 and revealed plans to continue expanding the variety of available games. The strategy aims to gradually increase both hardware installations and software purchases over time.