Nintendo shares have dropped after president Shuntaro Furukawa acknowledged that raising the prices on its hardware “will raise the barrier to purchase.”
While the company has clawed back a little of that loss throughout the day, Nintendo’s share value is down almost 9% compared to just five days ago, and down 14.7% compared to a month ago.
The company’s year-to-date performance is even more sobering, with prices down over 34%.
“We haven’t discussed the specific impact this price change will have on Nintendo Switch 2 sales, but we understand that it will raise the barrier to purchase to some extent,” Furukawa told investors, as translated by machine (thanks, IGN).
“However, the most important thing in the gaming console business is to provide engaging gameplay that offers value beyond the price,” he added.
“We and our software partners will continue to release various titles, and we aim to expand the market by conveying these titles along with the new experiences unique to the Nintendo Switch 2.”
Nintendo’s full year financial results reported substantial growth in net sales and profits following the first fiscal year of the Switch 2, and blamed “changes in market conditions” for increasing prices in the US, Japan, Canada, and Europe.
