The Reason Behind Nintendo Switch 2's High Game Prices, Explained by Analysts

The recent unveiling of the Nintendo Switch 2 has brought to light the issue of high game prices, with flagship title Mario Kart World costing $80 in the US. This price hike has sparked debate, with analysts weighing in on the possible reasons behind it. According to Dr. Serkan Toto, founder of Kantan Games, the global inflation and the industry's pricing trends have created an opportunity for Nintendo to raise its prices. Toto believes that Nintendo has taken into account the potential backlash from fans and is betting that they will eventually accept the new prices. Ampere Analysis' Piers Harding-Rolls attributes the pricing to a combination of inflation and Nintendo's approach to microtransactions and DLC. He notes that the company's decision to price Mario Kart World at $80 reflects the current market conditions and the cost of goods. Nintendo has a history of pricing its games higher than its competitors, and this trend is expected to continue with the Switch 2. The company's perception of value is also a factor, as stated by Nintendo of America's VP of Player & Product Experience Bill Trinen. Despite the high game prices, analysts do not expect it to impact the Switch 2's sales in the short term. However, the pricing strategy may have a significant effect on the video game market as a whole, potentially leading to a shift towards free-to-play and live service games. The gap between premium and free-to-play games may grow, with the console market becoming more appealing to older and affluent consumers. As the video game industry continues to evolve, it will be interesting to see how the pricing strategy of Nintendo and other companies affects the market.