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Nintendo Balances Switch 2 Pricing
- Nintendo kept Switch 2 console price steady despite tariffs by raising accessory prices instead.
- This strategy balances consumer demand sensitivity between console and accessories effectively.
Accessory Demand More Elastic
- Nintendo exploits more elastic demand for accessories versus consoles for higher profits.
- Consumers are less price-sensitive on small accessory purchases after buying the console.
Switch 2 Camera Price Strategy
- Price increase for the Switch 2 camera is higher due to it being a new, costly component.
- Likely fewer buyers justify maximizing profits per unit sold on this accessory.