Why is Nintendo Switch 2 so expensive? Analysts believe that the price of the console is not the problem as software becomes a ‘much harder sale’

Industrial analysts have weighed in on Nintendo Switch 2’s controversial pricing
Hardware prices are in line with expectations but software is a concern
Analysts say US tariffs are only part of the problem

The pricing model for Nintendo Switch 2 is now public knowledge in the wake of April 2nd Nintendo Direct, and there is a lot to unpack for both hardware and software.

In short, the common consensus is that the retail price of the console – $ 449.99 / £ 395.99 or $ 499.99 / £ 429.99 for Mario Kart World Bundle – is more or less in line with what people expected. It is the software side that seems to have generated the most concern.

We now know that Switch 2 launch games like Mario Kart World costs a limit absurd $ 79.99 / £ 74.99 while Donkey King Bananza appears on the current industry standard of $ 69.99 / £ 64.99. In both cases, this is a massive leap from most of the best Nintendo Switch games, and many analysts show concern that the precedence set here.

(Image Credit: Nintendo)

IGN has since spoken to a number of trusted industrial analysts on the topic of Nintendo Switch 2 prices.

There is a general consensus that the tariffs imposed by Trump administration are a factor. Nyu Stern Professor Joost Van Dreunen calls Nintendo’s pricing of a “strategic balance law”, adding that: “Nintendo seems to be building in a buffer against these potential trade barriers while ensuring that they maintain their traditional positive margin on hardware.”

Ampere Analysis’ Piers Harding-Rolls seems to agree here and say, “My view is that they probably had a number of awards for the US market in the game until the last moment due to the uncertainty of import tariffs.”

Cantan Games CEO Dr. Serkan Toto also considers competitor Sony as a factor: “Nintendo has probably incorporated into possible tariffs, the current inflation climate in the world and $ 700 Sony dared to charge for PlayStation 5 Pro last year.”

(Image Credit: Future/Nintendo)

Toto and other analysts may be suggesting a more cynical reason for Nintendo’s high price schemes for Nintendo Switch 2. Toto added that the $ 80 price tag for Mario Kart World is “quite daring.”

He added: “Tariffs could play a role, but I think it’s much simpler: Nintendo charges this award because they feel they can and that people will pay.”

Finally, Circana’s mat Piscatella suggests that Nintendo is strongly targeting its enthusiast market for the first year of sales. “Based on what we see across the market, sales to higher income or more wealthy households will probably not be affected by this pricing,” he said.

“And of course we have the price-sensitive super enthusiasts who will do and pay what it takes to acquire Switch 2 at the launch. Therefore, due to the limited quantities that will be available during the launch year, I do not expect this pricing to prevent years of a sale.”

I personally have to wonder if Nintendo’s software prices for Switch 2 will smooth out in the second year as Piscatella says: “The true test will come this year two as the supply will probably be more easily accessible and the addressable market will be forced to expand. So we will have to see what happens in the next 9-12 months.”

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