Nintendo’s success in sales is noteworthy for multiple reasons. The price of AAA video games has consistently risen since 2000, as stated by ArsTechnica. Additionally, Nintendo games tend to be quite expensive. Even remastered versions of old games like The Legend of Zelda: Skyward cost a hefty $60.

The “Switch Tax” is a well-known phenomenon within Nintendo’s gaming ecosystem. One argument is that developers must invest significant effort and resources to adapt their games for Nintendo’s platform, yet the company charges a premium for its first-party games, capitalizing on the nostalgia associated with franchises like Zelda and Mario. Despite these financial challenges, Nintendo games and Switch consoles continue to sell exceptionally well.

According to the Games Industry Biz, the Switch has maintained strong performance in 2023, thanks to the release of The Legend of Zelda: Tears of the Kingdom. However, Nintendo benefits from a hardware cost advantage. The Switch Lite starts at only $199 and is ready to use at that price. Comparatively, the Xbox Series S starts at $249, but an additional expenditure is required for a screen to play games, while the PlayStation 5 starts at $400 for the digital-only version, also requiring extra purchases for peripherals.