Nintendo have proven to be extremely price sensitive and not afraid to course correct if sales targets aren't being met, while simultaneously being committed to not having their consoles be a loss-leader, like PS and Xbox.
It's a tightrope walk. It's going to be fascinating seeing how this plays out.
While I’m not ready to give up on the Switch 2 at this juncture (since I still haven’t purchased a PS5, making it the most economically viable choice between the two), I am trying to temper my excitement for it and be ready for the likelihood that I will have to wait a couple of years before I can make that purchase.
It sucks for me because Nintendo is being Nintendo by reserving stuff like GameCube games on their NSO service for the Switch 2, which I’m pretty sure could have been done on the current Switch console. It worries me that they'll resort to similar tactics like putting future NSO releases for the emulated consols currently available on the Switch. (NES, SNES, N64, etc.) exclusively for the Switch 2.
I'd hate to miss out, but I can't imagine a scenario where I could justify the purchase in the short term unless I came across extra funds. That being said, I still want the Switch 2 to succeed.
That's more than fair enough. I think what Dylan mentioned earlier in the thread is interesting -- gaming as a luxury good. As it was back in the 80s, early 90s.
I've treated it as just something I'm happy to pay for. But as the price increases, that becomes harder to justify as frivolously.
For what it's worth, a few of my friends have been just fine without a PS5. But Sony's been so scared of slower PS5 sales that its carefully maintained compatibility for it with games.
Be interesting to see if that's the case with the Switch 2 a year from now.
Another great in depth piece with plenty of analysis which really is your forte. I think you make a great point. The future of gaming is going to have some real sticker shock.
I really appreciate the inclusion of USD for easy comparison. The figure from Ball is really eye opening. From that perspective the games industry has some catching up to do.
It sure is. I feel like my real sweet spot for writing is finding topics where there's a lot of assumptions floating around then finding data to debunk them. But I am enjoying this explainer / primer series that I've built up over time. I need to build a tab on my Substack for them.
I witnessed yesterday in my favorite store (where I bought most of my Switch games) how expensive Bananza and Mario Kart will be. And I reached the conclusion that I'll pass on the Switch 2 most probably...
Personally, outside of consoles and select AAA games, I think gaming is still as cheap as it's ever been. Yes, DLC and microtransactions are now a thing, but those are optional.
Gaming started off as a very expensive hobby back in the 70s, 80s and early 90s. Then CD drives came along, usurped cartridges, and game prices actually went down (thanks Sony!)
Between Greatest Hits and incredible sales on PSN, Steam, etc, gamers have been eatin' good for about 25 years now. Even console prices were pretty decent until PS5 and Xbox Series X debuted at $500.
Unfortunately, global inflation is taking hold of large gaming companies and they're returning the cost to the consumers.
I don't like Switch 2 prices anymore than anyone else, but speaking personally, I don't buy that many new games, period. They're a luxury and always have been.
I saw your post yesterday on this! Thanks for chiming in here too.
I'm kinda torn.
If the industry needs to raise prices to be sustainable, so be it. I'd be in favour of that too.
However, there's a lot of people suffering from cost of living related issues, and gaming is/was an affordable outlet for them. I just feel for those people where the Switch 2's 50% increase will rule out them getting it -- even though they want it.
The idea of gaming returning to being a luxury good again is an interesting one. I'm a 90s kid so I am missing a lot of this context!
I wish the Switch 2 was only $400 USD and all new AAA games were $70 USD. I think we'd all be more accepting of these prices, given the last five years of inflation. But that little nudge higher does make all the difference for those undergoing cost-of-living issues.
We'll wait and see where all of this heads, but as far as AAA gaming is considered, I do think prices are rising and there's no going back.
Solid detailed analysis. Nice work.
Nintendo have proven to be extremely price sensitive and not afraid to course correct if sales targets aren't being met, while simultaneously being committed to not having their consoles be a loss-leader, like PS and Xbox.
It's a tightrope walk. It's going to be fascinating seeing how this plays out.
While I’m not ready to give up on the Switch 2 at this juncture (since I still haven’t purchased a PS5, making it the most economically viable choice between the two), I am trying to temper my excitement for it and be ready for the likelihood that I will have to wait a couple of years before I can make that purchase.
It sucks for me because Nintendo is being Nintendo by reserving stuff like GameCube games on their NSO service for the Switch 2, which I’m pretty sure could have been done on the current Switch console. It worries me that they'll resort to similar tactics like putting future NSO releases for the emulated consols currently available on the Switch. (NES, SNES, N64, etc.) exclusively for the Switch 2.
I'd hate to miss out, but I can't imagine a scenario where I could justify the purchase in the short term unless I came across extra funds. That being said, I still want the Switch 2 to succeed.
That's more than fair enough. I think what Dylan mentioned earlier in the thread is interesting -- gaming as a luxury good. As it was back in the 80s, early 90s.
I've treated it as just something I'm happy to pay for. But as the price increases, that becomes harder to justify as frivolously.
For what it's worth, a few of my friends have been just fine without a PS5. But Sony's been so scared of slower PS5 sales that its carefully maintained compatibility for it with games.
Be interesting to see if that's the case with the Switch 2 a year from now.
Another great in depth piece with plenty of analysis which really is your forte. I think you make a great point. The future of gaming is going to have some real sticker shock.
I really appreciate the inclusion of USD for easy comparison. The figure from Ball is really eye opening. From that perspective the games industry has some catching up to do.
Thank you!
It sure is. I feel like my real sweet spot for writing is finding topics where there's a lot of assumptions floating around then finding data to debunk them. But I am enjoying this explainer / primer series that I've built up over time. I need to build a tab on my Substack for them.
I witnessed yesterday in my favorite store (where I bought most of my Switch games) how expensive Bananza and Mario Kart will be. And I reached the conclusion that I'll pass on the Switch 2 most probably...
Fair enough! I've pre-ordered already, but I'm nuts for Nintendo stuff.
Were you super keen on it to start off with though? Or on the fence? I'm just curious whether the price alone was enough to kill it here.
Well, I did thought of jumping right away on the Switch 2 due to the fact that it's backwards compatible :-)
Great article, Harrison.
Personally, outside of consoles and select AAA games, I think gaming is still as cheap as it's ever been. Yes, DLC and microtransactions are now a thing, but those are optional.
Gaming started off as a very expensive hobby back in the 70s, 80s and early 90s. Then CD drives came along, usurped cartridges, and game prices actually went down (thanks Sony!)
Between Greatest Hits and incredible sales on PSN, Steam, etc, gamers have been eatin' good for about 25 years now. Even console prices were pretty decent until PS5 and Xbox Series X debuted at $500.
Unfortunately, global inflation is taking hold of large gaming companies and they're returning the cost to the consumers.
I don't like Switch 2 prices anymore than anyone else, but speaking personally, I don't buy that many new games, period. They're a luxury and always have been.
I saw your post yesterday on this! Thanks for chiming in here too.
I'm kinda torn.
If the industry needs to raise prices to be sustainable, so be it. I'd be in favour of that too.
However, there's a lot of people suffering from cost of living related issues, and gaming is/was an affordable outlet for them. I just feel for those people where the Switch 2's 50% increase will rule out them getting it -- even though they want it.
The idea of gaming returning to being a luxury good again is an interesting one. I'm a 90s kid so I am missing a lot of this context!
I wish the Switch 2 was only $400 USD and all new AAA games were $70 USD. I think we'd all be more accepting of these prices, given the last five years of inflation. But that little nudge higher does make all the difference for those undergoing cost-of-living issues.
We'll wait and see where all of this heads, but as far as AAA gaming is considered, I do think prices are rising and there's no going back.