If you think Switch 2’s price of $450 seems a tad steep, then you are not alone. In fact, Nintendo has admitted the entry cost–especially considering the original Switch debuted at $300–could affect early hardware sales for the upcoming hybrid system.

During a recent financial results briefing, Nintendo president Shuntaro Furukawa was asked about the company’s forecast to sell 15 million Switch 2 systems in this fiscal year (which would roughly be 10 months for the console itself). Furukawa implied that the price point is one of the biggest factors into the calculation.

“Nintendo Switch 2 is priced relatively high compared to Nintendo Switch, so we recognize that there are corresponding challenges to early adoption,” said Furukawa. “That being said, Nintendo Switch 2 can play compatible Nintendo Switch software, so there is continuity between the platforms. We are taking steps like bundling software with the hardware to accelerate adoption in the first fiscal year, aiming to get off to the same start we did with Nintendo Switch.”

Furukawa seemed to dismiss the idea that production or the US tariff situation factored into the numbers. Instead, the Nintendo president continued stressing Switch 2’s price point as well knowing “it will not be easy to keep that momentum [with hardware sales] going over the long term through the holiday season and beyond.”

Switch 2 preorders are off to a hot start, and they sold out almost immediately in the US last month. Nintendo is launching Switch 2 on June 5, with Mario Kart World releasing alongside the system.