Ever since Nintendo (NTDOY) hit it big in the US in 1985, the Japanese company has found great success in the video game market for children and adults alike.
One key to its success has always been to prioritize fun, leaning heavily on a memorable roster of characters from its star franchises, such as Mario, Zelda, Kirby, and more.
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However, Nintendo has often drawn criticism for being behind the curve when it comes to hardware innovation.
Sony and Microsoft, Nintendo’s main competitors, both manufacture video game consoles that offer cutting-edge graphics and performance at a higher price point. In contrast, Nintendo has historically chosen to keep its hardware simpler to remain at a more family-friendly price point.
Until now.
Nintendo’s mostly black Switch 2 suggests a more mature console. Image via Nintendo.
Nintendo makes a major change
On April 2, Nintendo held its long-anticipated Direct event to announce the release date and details of the Switch 2, its successor to its wildly successful Switch, which sold more than 150 million units worldwide.
As nice as the new console looks with its matte black exterior and tastefully hidden signature colors, one thing about it may make parents and fans’ hearts drop: the price tag. The system retails for $449, a whopping $150 more than the original Switch when it came out in 2017.
Related: Nintendo unveils a highly anticipated product amid low sales
The system itself is not the only price that’s changing. Nintendo also announced a major hike in the prices of its first-party games, with digital games retailing for $79.99 and physical games for $89.99. Prior to this announcement, the average Nintendo first-party game sold for $49.99 – $59.99, marking a price jump of $30 per title.
Nintendo fans quick to speak out
Nintendo is known for having a passionately loyal fanbase, but many fans were not on board with the new pricing.
“I literally can’t regularly afford $70+,” Redditor TheTaffyMan wrote. “Wages haven’t come close to matching inflation, and almost $100 for a game is bonkers. Premium AAA games JUST started becoming $70. God does this leave a bad taste in my mouth, and I will have to hold off on the Switch 2 now until I have more disposable income.”
Related: Nintendo fans finally get a glimpse of the Switch 2
Many others had similar reactions. User MagicalBread1 made a strong point, saying, “I was excited for the Switch 2, but not anymore…the prices alone are going to alienate a majority of their user base (families).”
Why video game costs are rising
Part of Nintendo’s reasoning for the price hike is likely the same as the rest of the billion dollar video game industry is grappling with: games cost more to make than ever before.
“Call of Duty: Black Ops Cold War,” which came out in 2020, cost $700 million to make, while “Genshin Impact” is estimated to have spent close to $900 million between production costs and ongoing development.
Rumors are also floating around that Rockstar’s upcoming “Grand Theft Auto 6” cost over a billion, which would make it the first video game to break that barrier.
Switch 2 debuts on June 5.
Related: Sony makes a drastic move to sell a struggling product
