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Technology Stocks : Silicon Motion Inc. (SIMO)
SIMO 98.14-1.5%3:59 PM EDT

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To: Elroy who wrote (2903)8/4/2025 10:01:32 AM
From: Elroy1 Recommendation

Recommended By
Lance Bredvold

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Nintendo bumps Switch prices as successor pricing looms

(SIMO's controller is in the Switch 2).

digitimes.com

Nintendo announced that it would raise the price of the first-generation Switch console in the US beginning August 3, 2025, citing 'market conditions' as the reason in a statement on its website.

Switch lineup faces pricing pressuresReports from Bloomberg and Nikkei indicate that price adjustments will impact the OLED and Lite versions of the Switch, as well as certain accessories for the Switch 2.

The price of the newly launched Switch 2 console remains unchanged, but Nintendo suggests future adjustments may be needed.

The first-generation Switch is currently priced at US$299, while the Switch 2 costs US$449.

Tariff concerns drive strategic movesThe June 2025 release of the Switch 2 sparked interest regarding the impact of US tariffs on its price. In response to tariffs on key manufacturing regions like Japan, Vietnam, and China, Nintendo raised accessory prices ahead of the Switch 2's early June launch.

Strong Switch 2 performance drives revenue growthNintendo announced that over 6 million Switch 2 units were sold within seven weeks of its launch.

The Switch 2, Nintendo's latest gaming console, launched on June 5, 2025, and sold 5.82 million units by the end of June 2025. On August 1, 2025, Nintendo reported that its revenue for the first quarter of fiscal year 2025 (April to June 2025) more than doubled compared to the same period in 2024, largely thanks to the success of the Switch 2.

Quarterly operating profit was JPY56.9 billion (US$381.89 million), marking a modest 4.4% increase from the previous year. The growth was constrained by the lower profit margins of game consoles compared to software titles. Nintendo also noted that it front-loaded advertising and promotional expenses to support the Switch 2 launch.
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