Switch 2 Pricing
This is currently the hottest topic regarding the Switch 2. I want to take a look at the pricing strategy and why Nintendo decided on the pricing structure they finally ended up with.
Console
Before the Switch 2 release, many expected Nintendo to set a price for the console at $399. Some speculated it might go a little over $400, but $450 max.
Interestingly, Nintendo did not mention any prices in the Direct. Instead, they only directed viewers to check the official Nintendo website for pricing after the Direct.
Why?
I believe the price of the console was not set until just a few days before the Direct. The Direct was shot and edited several days in advance, as shooting and editing take time.
Due to the tariffs situation and the weak currency in Japan, Nintendo probably wanted to wait until the last moment to finalize the prices for the console and the games.
Therefore, I believe the Direct did not mention any prices.
Now, Nintendo has finally decided to price the console at $449 and $499 with Mario Kart World included as a bundle.
So the price of the console is actually reasonable, since many people expected $399 and $449 is just about 13% more. It is a price that people can pay if they expected $399. It would’ve been a huge problem if the console was priced at $499, which would have been $100 more than people expected.
Games
Now, for games, the situation looks a little different and has caused a backlash for Nintendo.
Nintendo set multiple prices for different games, which is not unusual. However, they priced Mario Kart World at a very high price of $79 for the digital version, which is about $10 more than the highest price of a game for Switch 1. At the same time, Nintendo announced that Donkey Kong Bananza will cost $69.
The prices seem to be all over the place, but I think there is a strategy here.
The prices seem to be all over the place, but I think there is a strategy here.
Regular Nintendo Switch 2 Games
The regular price for a Switch 2 game will probably be $69. This is the new default price for a Nintendo game for the Switch 2. For Switch 1, that price was $59, so an increase of $10. Donkey Kong Bananza is an example of this category.
Premium Nintendo Switch 2 Games
Additionally, there will be games that are priced a little higher. For Switch 1, that game was Tears of the Kingdom, which was $69, whereas other games were $59. This is for games that cost more in development or have a high fan base, making people more likely to pay the higher price. It makes sense for Nintendo; if the demand is high, then why not ask for a higher price if people are willing to pay it?
Mario Kart World is one of the games in this category, and I’m certain the next 3D Zelda will also be in this category.
I believe the main issue here is that Mario Kart World is also a launch game. If the game had been released multiple years into the Switch 2 lifecycle and no game was priced this high, it wouldn’t have caused such an issue. But now, people are scared that almost every game will cost this much. However, I believe it is just high-demand and/or games that cost more to develop compared to other Nintendo games.
Nintendo Switch 2 Edition Games
This is an interesting category. Games that have been released for Nintendo Switch 1 but will receive an upgrade are put in this category. The prices range from $69 to $79. For instance, Breath of the Wild Switch 2 Edition will cost $69, whereas Kirby and The Forgotten Land Switch 2 Edition and Super Mario Party Jamboree Switch 2 Edition will cost $79, just like Donkey Kong Bananza. So why the difference?
The reason is simple. There is additional content for Kirby and Super Mario Party, and it is significant. So much so that Nintendo decided to price the additional content another $10.
In my opinion, this is reasonable. For Kirby and The Forgotten Land, it seems to be a complete additional story arc. We don’t know the length of the story and how much playtime we will gain, but it looked significant.
The same goes for Super Mario Party Jamboree. A whole new mode was added, which makes use of the new features of the Switch 2 with Mouse Mode or the additionally sold camera. This is also a significant upgrade.
In comparison, the Zelda games receive performance upgrades and some light additional content, which is somehow tied to the new Nintendo Switch 2 App. This upgrade does not look significant enough to ask for a higher price. This might also be the reason that Nintendo decided to give away the upgrade at no additional cost for all Nintendo Switch Online members of the highest tier.
Other
Third-party studios can obviously price their games however they like, and it seems to me they will stick to prices between $59 and higher. Older games might be set lower.
Switch 2 + Mario Kart World Bundle
As a compromise, in my opinion, Nintendo is also offering the Switch 2 + Mario Kart World Bundle, which is priced at $499. This allows everyone to purchase Mario Kart World for just $50, which is a very good discount of $30.
I think most people who are interested in the Switch 2 will, or even should, probably buy the bundle. They will get a great game and a great discount. This was Nintendo's plan all along, as they can sell many copies of Mario Kart World and are off to a good start to break the record of Mario Kart 8 Deluxe.