Former PlayStation executive Shawn Layden recently expressed his views on Nintendo's approach to pricing its upcoming Nintendo Switch 2 games. According to Layden, the company's strong first-party intellectual property (IP) can help reduce consumer resistance to higher-priced titles. This strategy is evident as Nintendo moves forward with setting prices for its new console games, some of which exceed $70. Layden, who left Sony in 2019 after serving as chairman of its worldwide studios group, discussed this topic during an appearance on the PlayerDriven podcast. His insights shed light on how Nintendo manages to balance rising production costs while maintaining player expectations.

Layden noted that Nintendo has ventured into uncharted territory regarding price elasticity. He explained that when prices reached $70, there was a significant reaction from consumers. However, Nintendo seems to have embraced the challenge by establishing $80 as the standard price for flagship titles on the new platform. This bold move underscores the company's confidence in its exclusive content and the loyalty of its fanbase.

The former PlayStation executive also highlighted Nintendo's ability to leverage its iconic franchises to offset negative reactions to price hikes. For instance, if a game features characters like Mario, it becomes the sole destination for fans seeking those experiences. Consequently, players are more willing to overlook the increased cost due to their desire for the unique content Nintendo offers.

Currently, Nintendo has announced pricing details for three games on the new system. Among these, Mario Kart World will retail at $80, Donkey Kong Bananza at $70, and Nintendo Switch 2 Welcome Tour at $10. The company unveiled further information about the Nintendo Switch 2 last week, revealing that the base model would cost $450 in the United States, with a bundle including Mario Kart World priced at $500. Economic uncertainties stemming from US President Donald Trump's tariffs have led Nintendo to delay pre-orders for the system.

In international markets, pricing varies. In the UK, the console will cost £395.99, with the bundle at £429.99. In Europe, prices are set at €469.99 for the console and €509.99 for the bundle. Canadian customers will pay CAD$629.99 for the console and CAD$699.99 for the bundle.

Nintendo's strategic use of exclusive IPs continues to shape its market positioning. By aligning its pricing with the value provided through beloved franchises, the company aims to ensure continued support from its dedicated audience, even as prices rise. This approach not only reflects confidence in its offerings but also acknowledges the evolving landscape of gaming economics.