Nintendo cleared up that they are not planning to sell their Switch console at a loss. Nintendo Chief Executive Officer Tatsumi Kimishima even added that they are planning to ship two million units during their console's global launch. With the initial number of units to be launched, the Switch will be available all across the U.S., Europe and Japan.
Switch Price And Consumer Expectations
Kimishima explained that Nintendo plans to make a profit with their Switch console. But they also think that its price should be according to customer expectations. Basically, that would mean finding the middle ground between profiting from the Switch and being competitive with other consoles. Nintendo's fiscal figures have been weak during the last quarter,but the Switch looks to be its saving grace for the next fiscal months of 2017.
Still, Nintendo cannot shock its customers with a high price that might turn off consumers from buying the Switch. With their weak fiscal quarter, Nintendo cannot afford to lose any more profit. Even so, the company assures that the Switch's price is likely to be at par with consumer expectations.
Switch Launch Will Not Be A Loss
When taken into consideration, the two million Switch units that Nintendo is planning to ship do not necessarily translate to actual sales. Instead, the figure looks indicative of how many consoles each retailer will have during the first month of the Switch's release by March next year. Kimishima cleared up speculations that Switch will be sold at a loss during a financial briefing.
Concerns rose up that if the Switch will not be sold at a loss as is tradition, then the initial price of the Nintendo console would be high. On the other hand, Kimishima assured that they are "listening to what consumers expect" on setting the price point of the Switch, which is good given the competition from other consoles. The Nintendo CEO also added that launching their new product at a loss is not the way to support their business.
Nintendo will launch 2 million units of the Switch by March 2017 that should last for a maximum of four weeks.