An analyst has predicted that Nintendo will “probably” worth the upcoming Swap 2 at $399.
Joost van Dreunen, creator of ‘One Up – Creativity, Competitors, and the World Enterprise of Video Video games’ and co-founder of the Nielson-owned video games market analysis agency ‘SuperData Analysis’ has introduced his reasoning for this prediction in his newest ‘SuperJoost Playlist’ e-newsletter.
In it, he states {that a} $399 worth level would comfortably straddle the road between reasonably priced and premium, positioning it beneath its direct rivals however above the present Swap.
“Based mostly on present market dynamics and platform positioning technique, Nintendo is prone to worth the Swap 2 at $399. It represents a important psychological threshold that balances premium {hardware} aspirations in opposition to mainstream market accessibility.
“At this worth level, Nintendo would preserve its conventional constructive margin on {hardware} whereas positioning the Swap 2 distinctly beneath rival premium gaming units but above the unique Swap’s launch worth. It alerts a significant technical development with out alienating its core household demographic.”
He additionally notes that at a time by which a possible commerce warfare may current some unlucky obstacles, Nintendo can be focusing extra on platform sustainability over uncooked unit economics. As such, its transfer to advertise backwards compatibility and a seamless transition from the OG Swap probably means the agency is leaning towards participant retention and software program attachment charges over instant console gross sales.
Nintendo’s capability to keep up premium worth factors for its software program over a number of years signifies that it does not have to leverage Nintendo Swap On-line fairly as a lot as Sony and Microsoft do with their very own respective subscription providers. With the Swap 2 being backwards suitable, Nintendo can be seeking to give attention to maximising software program income and digital engagement over a a lot lengthier console lifespan, as evidenced by the Swap.
Lastly, Joost additionally mentions that PC handhelds just like the Steam Deck and Asus ROG Ally probably will not encroach on Nintendo’s territory a lot due to their increased worth factors. He states that knowledge suggests the viewers overlap between these units and Nintendo is minimal due to the latter’s unique line-up of first-party video games, which means that the majority house owners of premium PC handhelds probably preserve a number of gaming platforms.
