Nintendo reacts to PlayStation price hike

Nintendo has joined Microsoft in responding to this week’s shock PlayStation 5 price hikeand said he had “no plans” to similarly increase the cost of the Nintendo Switch.

In a statement to Eurogamer this morning, Nintendo confirmed that it “has no intention of increasing the retail price of its hardware”.

The answer goes further than that of Microsoft, which last night noted Sony’s dramatic decision simply stating that it wanted to “provide our fans with great gaming options”, before reiterating the launch price of the Xbox Series X and S.

Eurogamer Breaking Newscast: Sony is reluctantly raising the price of the PS5, but knows it can get away with it.

Nintendo’s full statement includes a quote from company president Shuntaro Furukawa, given at its June annual general meeting, and then reiterates that Nintendo’s pricing remains unchanged at this time.

Here is that statement in full:

“As our Chairman, Mr. Furukawa, said at the 82nd Annual General Meeting of Shareholders in June:

“While we cannot comment on pricing strategies, we currently have no 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 ongoing deliberation.’

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

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

Elsewhere in the world, Japan, China, Australia, Mexico and Canada will also see price increases. But the United States will not see a price increase just yet.

PlayStation boss Jim Ryan blamed the price hike on “high global inflation rates, as well as unfavorable monetary trends, affecting consumers and creating pressure on many industries” and said it had been a “difficult decision”.

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

Speaking to Eurogamer, analyst David Gibson of MST Financial explained that Sony’s decision was due to currency exchange costs.

“Sony would have budgeted some cross rates against its dollar costs,” Gibson explained, “but the pound and other currencies all moved due to rising interest rates.

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

“The fact that Sony hasn’t changed US pricing shows how much of it is a currency situation versus dollar costs, not inflation.”

However, reacting to yesterday’s news, industry analyst Piers Harding-Rolls suggested that – as unpopular as the move was – the changes were unlikely to hurt pent-up demand or Sony’s bottom line.

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