Nintendo Switch 2: Price Tag Expected to be Under USD499
Nintendo’s upcoming Switch 2 console is likely to buck the trend of high-priced gaming systems. Despite rumours of upgraded hardware, including a powerful NVIDIA Tegra T239 chip capable of delivering 4K visuals, a Japanese securities analyst predicts the console will be priced below USD499 (RM2,184~).
Hideki Yasuda is an analyst at Toyo Securities. He believes that Nintendo will continue to offer a more affordable console. This strategy sets Nintendo apart from competitors like Sony and Microsoft. The exact price point remains uncertain. However, Yasuda’s prediction suggests that the Switch 2 will continue to appeal to a broad audience.
The original Switch’s success is largely due to its relatively low price. The more expensive Switch OLED model has also performed well. However, the lower-priced console remains the dominant seller.
Nintendo has not yet officially announced the Switch 2. However, rumours suggest a release in the first half of next year.
Analyst’s Price Point Perspective
“At this point, no details have been announced about the successor to the ‘Switch,'” Yasuda said in a research note to investors, “but various reports suggest that it will be released in the first half of next year, will be relatively cheap in dollar terms (less than $499?), and will have performance that is lower than the PS (PlayStation) 4 Pro.”
However, Yasuda acknowledges the potential for a perceived price difference depending on the region due to currency conversion. He uses the example of a McDonald’s Big Mac to illustrate this point.
“Since $499 is about 75,000 yen when converted at 150 yen to the dollar, many people in Japan will have doubts if this is said to be cheap,” Yasuda explains. “However, just for reference, a McDonald’s Big Mac in the United States costs $5.69, which is 853 yen at 150 yen to the dollar, and 682 yen at 120 yen to the dollar. Compared to 480 yen in Japan, it is 1.77 times the price at 150 yen, and 1.42 times the price at 120 yen.”
Yasuda concludes, “Outside of Japan, it would not be strange to feel that the 150 yen to the dollar is about 60% of the dollar price, and even at 120 yen it would feel about 30% cheaper. Considering these things, the successor to the ‘Switch’ is likely to stimulate inbound demand under these circumstances.”
