Switch 2 To Be Sold At A Loss Due To Higher Production Costs, Analyst Says

Nintendo--which has a history of selling its consoles at a profit when its competitors may not--is expected to sell every Switch 2 console at launch for a loss. That's the belief of one analyst, who estimated the total bill of materials cost for the Switch 2 to be $400 USD. The system launches in June, priced at $450 USD.Speaking to Bloomberg, Tokyo Securities analyst Hideki Yasuda made this claim and said the loss is "something Nintendo would be able to absorb." Yasuda previously said the Switch 2's new chip set alone might cost as much as $150, which compares to $80 per unit for the original Switch. Video game consoles from Microsoft and Sony are historically sold at a loss when they launch, with these companies earning the money back through higher-margin opportunities like software and services. And over time, various efficiencies typically help to reduce the cost of producing the consoles themselves.Continue Reading at GameSpot

Apr 10, 2025 - 16:35

Switch 2 To Be Sold At A Loss Due To Higher Production Costs, Analyst Says

Nintendo--which has a history of selling its consoles at a profit when its competitors may not--is expected to sell every Switch 2 console at launch for a loss. That's the belief of one analyst, who estimated the total bill of materials cost for the Switch 2 to be $400 USD. The system launches in June, priced at $450 USD.

Speaking to Bloomberg, Tokyo Securities analyst Hideki Yasuda made this claim and said the loss is "something Nintendo would be able to absorb." Yasuda previously said the Switch 2's new chip set alone might cost as much as $150, which compares to $80 per unit for the original Switch.

Video game consoles from Microsoft and Sony are historically sold at a loss when they launch, with these companies earning the money back through higher-margin opportunities like software and services. And over time, various efficiencies typically help to reduce the cost of producing the consoles themselves.Continue Reading at GameSpot