Nintendo may be setting a precedent for price increases across the gaming industry with its new OLED Nintendo Switch that will launch at a higher price point. Sony is said to be “closely monitoring” the situation surrounding the more expensive new Switch and may choose to make some price changes of its own depending on the outcome. The long-term impact of this could lead to an increase in PS5 prices as demand remains strong and consumers show they are willing to pay more.
A Reported in Japan Times shows that eyes across the industry are being locked by Nintendo. With the new OLED Switch doesn’t offer any hardware upgrades to the standard Switch (aside from an OLED display and built-in ethernet port), but retailing for $50 more, it could be the basis for a new standard in hardware price increases without any noticeable improvements to the hardware itself.
Ace Research Institute analyst Hideki Yasuda said that Nintendo’s experiment with the Switch OLED pricing model “could set a precedent for more charging across the industry”. The report from The Japan Times also spoke to an anonymous individual in the PlayStation division at Sony, who indicated that the company is “closely monitoring the market reaction” to the new OLED Switch. We have seen similar reactions to software price increases across the industry since the launch of the new generation of consoles.
PS5 first launched in November 2020, but even 8 months after launch, the new generation console is almost impossible to find. With continuous sales and resale market for double the retail value of PS5 thanks in part to inventory collectors, it looks like Sony might be considering raising the price of the PS5 in some way. Whether this comes with reported an upcoming hardware revisionor if Sony is just considering increasing the suggested retail price of the current console is still under consideration (if they really do anything), but it’s clear that Nintendo’s gamble to see Whether consumers buy the more expensive OLED Switch will ultimately have price consequences across the industry.