Hey there, tech enthusiasts! Let’s dive into the latest buzz in the gaming world – Nintendo’s new console, the Switch 2, and its price tag.

This sleek device is set to retail at $450, while first-party games range from $70 to $80. Such figures sparked quite a conversation during its recent reveal.

In conversations following the launch, Nintendo’s executives clarified that these prices aren’t aimed at a loss. They emphasize that the price point reflects the right value for consumers.

President of Nintendo of America, Doug Bowser, explained in a CNBC interview that the company did not factor in tariffs when deciding on the console’s pricing. The focus was solely on delivering a product that offers real value.

He added that the company aims to sustain hardware margins—this is a shift from their past approach with the Wii U, where selling at a loss was common to boost software sales.

The costs associated with the upgraded specs and newly introduced features, like GameChat and mouse mode, warrant a price increase. With technology evolving rapidly, Nintendo insists these enhancements justify the console’s cost.

Bowser also pointed out that economic inflation is another factor driving the new pricing. As the cost of materials and production goes up, so does the end price for consumers.

Now, transitioning to game prices, Nintendo has decided to list first-party games between $70 and $80. They state that game prices have remained unusually stable, with the last significant change occurring years ago.

In discussions about game pricing, Bowser reiterated that Nintendo isn’t trying to set a new standard with this change. Instead, they look at each game’s unique experience to determine a fitting price point.

With the gaming industry evolving, Nintendo plans to evaluate the value and experience offered by each game, ensuring that consumers feel they receive a fair return on their investment.