The Switch 2’s cheaper, Japan-only model may be generating loss of $160 per unit for Nintendo, Japanese analyst says
The Switch 2’s cheaper, Japan-only model may be generating loss of $160 per unit for Nintendo, Japanese analyst says
by HatingGeoffry
17 Comments
Bedu009
So uh when do we get recession pricing
Luck88
So the price of 3 first party games. Iirc the average Switch user owned 8+ games. Add the NSO subscription on top and they should be fine.
Nimble_Natu177
Consoles being sold at a loss isn’t news, it’s been the way of the industry for over 30 years at this point.
EDIT: I am aware this it not the case for Nintendo (unless you include the Wii U / 3DS price cuts)
Darkamlight
Yo, the thing is at 4.6M units in Japan. You telling me they lost 736M of $ in their main region? I call it bs. I’m pretty sure they’re not winning a lot of money per unit but to think they’re getting close to lose a whopping billion? Yuuuurp, nope.
astrogamer
I doubt Nintendo would actually take that much of a loss per unit. $100 is around the max I could see and a lot of the profit in North America was eaten by the tariffs.
LlorchDurden
But they usually care about their local market so they’re fine
drakner1
And what about selling breath of the wild for 3rd system at same price for a decade?
NIDORAX
Nintendo wants to get as many Japanese players to buy the Switch 2 even if it is sold at a lost. Next year, Nintendo will likely release a Pokemon Winds and Waves Switch 2 Bundle pack to make up for the loss. Trust me, Pokemon will always move the Nintendo Console sales numbers up, even if the game is sold at an exorbitant price.
Samurai_Geezer
A console sold at a loss is very un-Nintendo like.
illuminatedtiger
Making them Japanese only was an absolute master-stroke by Nintendo. Locals would otherwise not stand a chance against tourists trying to make a quick buck off the weak yen.
FieldOfFox
How?
How is a last gen Tegra, printed on last last last gen process, costing this much to product?
Nintendo getting fleeced by Samsung here lol
smitherenesar
The word “may” is doing some heavy lifting. Likely not near that much, but still a little bit
YOUFUCKINGFUCKERS
Nintendo needs a lite model to hit the market ASAP. That model would be a much more effective loss leader as it would be cheaper to produce.
I still think the 8nm processor and 1080p screen were mistakes. Both specs make the prospect of producing a Lite model more difficult.
BrooklynSmash
An *actual* loss, or a potential loss?
ooyat
It’s called a loss leader. Lose money on an item to get people in but make up the loss by selling other items with higher margin.
PrydaBoy
Nice!!!
Bulbidavid
BS.
the analyst bases this on the average cost of a single Switch 2 (and this is not how it’s works) and convert $ to ¥…
17 Comments
So uh when do we get recession pricing
So the price of 3 first party games. Iirc the average Switch user owned 8+ games. Add the NSO subscription on top and they should be fine.
Consoles being sold at a loss isn’t news, it’s been the way of the industry for over 30 years at this point.
EDIT: I am aware this it not the case for Nintendo (unless you include the Wii U / 3DS price cuts)
Yo, the thing is at 4.6M units in Japan. You telling me they lost 736M of $ in their main region? I call it bs. I’m pretty sure they’re not winning a lot of money per unit but to think they’re getting close to lose a whopping billion? Yuuuurp, nope.
I doubt Nintendo would actually take that much of a loss per unit. $100 is around the max I could see and a lot of the profit in North America was eaten by the tariffs.
But they usually care about their local market so they’re fine
And what about selling breath of the wild for 3rd system at same price for a decade?
Nintendo wants to get as many Japanese players to buy the Switch 2 even if it is sold at a lost. Next year, Nintendo will likely release a Pokemon Winds and Waves Switch 2 Bundle pack to make up for the loss. Trust me, Pokemon will always move the Nintendo Console sales numbers up, even if the game is sold at an exorbitant price.
A console sold at a loss is very un-Nintendo like.
Making them Japanese only was an absolute master-stroke by Nintendo. Locals would otherwise not stand a chance against tourists trying to make a quick buck off the weak yen.
How?
How is a last gen Tegra, printed on last last last gen process, costing this much to product?
Nintendo getting fleeced by Samsung here lol
The word “may” is doing some heavy lifting. Likely not near that much, but still a little bit
Nintendo needs a lite model to hit the market ASAP. That model would be a much more effective loss leader as it would be cheaper to produce.
I still think the 8nm processor and 1080p screen were mistakes. Both specs make the prospect of producing a Lite model more difficult.
An *actual* loss, or a potential loss?
It’s called a loss leader. Lose money on an item to get people in but make up the loss by selling other items with higher margin.
Nice!!!
BS.
the analyst bases this on the average cost of a single Switch 2 (and this is not how it’s works) and convert $ to ¥…