2018 was a reality check and brought lofty expectations back down to Earth,” said
Michael Pachter, an analyst at Wedbush Securities Inc. “The Switch is great, but is still primarily a handheld, and a very expensive one.”
Nintendo Switch. (Bloomberg)
That opens the possibility of price cuts. History suggests reductions will have to be aggressive in order to work. Sales of the 3DS picked up only after prices were slashed by 40 per cent five months after launch, but the Wii U didn’t recover even after Nintendo dropped the price by about 15 per cent within a year after release.
“I don’t see sales growing unless the price is reduced to below US$200,” Pachter said, indicating a 33 per cent cut from the Switch’s current price.