Microsoft and Sony comment as well!
Bloomberg reached out to Nintendo, Microsoft, and Sony for comment on if they intend to raise console prices in Japan and as you can see in the tweet above, Nintendo said they have no such plans now.
If you haven’t heard, Japan has been experiencing some electronic prices hikes thanks to inflation, but one area that hasn’t changed in price is the video game console market. This is mainly due to the fact that none of the console manufacturers want to be the first to raise prices, as they fear that upping the price will scare away both customers and developers to competing platforms.
The console manufacturers then choose to rely on international sales to recoup the costs but resellers have made that more difficult.
The Nintendo Switch OLED model is priced at $350 plus tax in the US, but costs 37,980 yen (roughly $290) in Japan. Hardware resellers around Tokyo currently offer to buy it for over 40,000 yen apiece, relying on that price delta for their profit. Sony’s PS5 costs about 55,000 yen in stores, yet can be resold immediately for 80,000 yen or more at retailer Noah Trading Co. in Tokyo’s Ikebukuro. The company boasts on its website that it generated 10 billion yen in revenue in 2020, selling electronics domestically and to countries and regions such as China, Hong Kong, Taiwan, Singapore and the US.
So basically, people are buying the consoles for cheap in Japan and reselling them in regions where prices are higher. This, along with the ongoing supply chain struggles that have been prevalent since 2020, makes it seem like eventually something has to give.
For now however, Nintendo is standing firm. We will keep you updated on if prices do end up rising after all. If you want to read the full article by Bloomberg it will be posted in the link below.
A recently graduated creative writer hoping to work his way into the greater gaming sphere.