Why is Nintendo Switch 2 so expensive? Analysts think the price of the console isn't the problem as software becomes a 'much harder sell'

(Image credit: Nintendo)

Industry analysts have weighed in on Nintendo Switch 2's controversial pricing
Hardware prices are in line with expectations, but software is a concern
Analysts are saying that US tariffs are just one part of the problem

The pricing model of the Nintendo Switch 2 is now public knowledge in the aftermath of the April 2 Nintendo Direct, and there's much to unpack for both hardware and software.

In short, the common consensus is that the retail price of the console - $449.99 / £395.99 or $499.99 / £429.99 for the Mario Kart World bundle - is more or less in line with what folks were expecting. It's the software side that seems to have generated the most concern.

We now know that Switch 2 launch games like Mario Kart World will cost a borderline absurd $79.99 / £74.99, while Donkey Kong Bananza is being listed at the current industry standard of $69.99 / £64.99. In both cases, this is a massive leap up from most of the best Nintendo Switch games, and many analysts are showing concern about the precedent being set here.

an image of the Nintendo Switch 2 Pro Controller being held — (Image credit: Nintendo)

IGN has since spoken to a number of trusted industry analysts on the topic of Nintendo Switch 2 pricing.

There is general agreement on the tariffs imposed by the Trump administration being a factor. NYU Stern professor Joost van Dreunen calls Nintendo's pricing a "strategic balancing act," adding that: "Nintendo appears to be building in a buffer against these potential trade barriers while ensuring they maintain their traditional positive margin on hardware."

Ampere Analysis' Piers Harding-Rolls seems to agree here, saying: "My view is that they probably had a range of pricing for the US market in play up until the last minute due to the uncertainty on import tariffs."

Kantan Games CEO Dr. Serkan Toto also considers competitor Sony as a factor: "Nintendo probably factored in possible tariffs, the current inflationary climate in the world, and the $700 Sony dared to charge for the PlayStation 5 Pro last year."

The Nintendo Switch 2 console boxes on a stand — (Image credit: Future/Nintendo)

Toto and other analysts, then, maybe hinting at a more cynical reason for Nintendo's lofty pricing schemes for Nintendo Switch 2. Toto added that the $80 price tag for Mario Kart World is "quite bold."

He added: "Tariffs could play a role, but I think it is much simpler: Nintendo is charging this price because they feel they can and that people will pay."

Finally, Circana's Mat Piscatella suggests that Nintendo is strongly targeting its enthusiast market for the first year of sales. "Based on what we're seeing across the market, sales to higher-income or more affluent households likely won't be impacted by this pricing," he said.

"And, of course, we have the price-insensitive super enthusiasts that will do and pay whatever it takes to acquire the Switch 2 at launch. Therefore, because of the limited quantities that will be available during the launch year, I do not anticipate this pricing to hinder year one sales volumes."

I personally have to wonder if Nintendo's software pricing for Switch 2 will level out in its second year, as Piscatella says: "The true test will come in year two, as supply is likely to become more readily available, and the addressable market will be forced to widen. So, we'll have to see what happens over the next 9-12 months."

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Rhys is TRG's Hardware Editor, and has been part of the TechRadar team for more than two years. Particularly passionate about high-quality third-party controllers and headsets, as well as the latest and greatest in fight sticks and VR, Rhys strives to provide easy-to-read, informative coverage on gaming hardware of all kinds. As for the games themselves, Rhys is especially keen on fighting and racing games, as well as soulslikes and RPGs.