10.7 C
New York
Sunday, November 27, 2022

Buy now

Nintendo responds to PlayStation price hike


Mario gives a thumbs up.

Nintendo has joined Microsoft in responding to this weeks shock PlayStation 5 price hike, and said it had “no plans” to similarly bump up the Nintendo Switchs cost.

In a statement issued to Eurogamer this morning, Nintendo confirmed it had “no plans to increase the trade price of its hardware”.

The response goes further than that of Microsofts, which last night noted Sonys dramatic decision by simply stating it was keen to “offer our fans great gaming options”, before reiterating the Xbox Series X and Ss launch price point.


Watch on YouTube

Eurogamer Breaking Newscast: Sony reluctantly raises PS5 price, but knows it can get away with it.

Nintendos full statement includes a quote from company president Shuntaro Furukawa, given during its June AGM, and then reiterates that Nintendos prices are staying put for now.

Heres that statement in full:

“As our president Mr Furukawa stated at the 82nd Annual General Meeting of Shareholders in June:

“While we cannot comment on pricing strategies, we currently do not have any plans to change the price of our hardware due to inflation or increased procurement costs in each country. We will determine our future pricing strategies through careful and continued deliberations.

“While the final price to consumers is always determined by retailers, as Mr Furukawa stated, Nintendo has no plans to increase the trade price of its hardware.”

Yesterday, Sony stunned the games industry by announcing an unprecedented price increase for its PlayStation 5 base model and discless version, which will now both cost £30 more in the UK and €50 more in Europe.

Elsewhere around the world, Japan, China, Australia, Mexico and Canada will also see price rises. But the US will not see a price rise at this time.

PlayStation boss Jim Ryan blamed the price rises on “high global inflation rates, as well as adverse currency trends, impacting consumers and creating pressues on many industries” and said it had been a “difficult decision”.

The move was widely criticised, especially at a time when many are facing increased economic hardship.

Speaking to Eurogamer, analyst David Gibson of MST Financial explained that Sonys decision was due to foreign exchange costs.

“Sony would have budgeted on certain cross rates versus its costs in dollars,” Gibson explained, “but the pound and other currencies have all moved because of rising interest rates.

“Yes, freight rates have gone up but the semiconductor market is improving and DRAM prices are falling.

“The fact Sony didnt change US prices shows how its largely a forex situation versus costs in dollars, and not inflation.”

However, reacting to the news yesterday, industry analyst Piers Harding-Rolls suggested that – however unpopular this move might be – the changes were unlikely to dent pent up demand, or Sonys bottom line.

Related Articles

Latest Articles