Securities firm believes Switch 2 costs $400 to make, Nintendo will sell at a loss – GoNintendo

Kataploom

Kataploom

Gold Member
Well, just like that... And I don't think this is crazy for Nintendo considering Switch 1 success, they can allow themselves some risk and easily get the money back on games (first and third parties). Also Switch 1 is still gonna be selling, maybe this is the reason why they're keeping it for now?

Nintendo hasn't shared information on how costly it is to produce one Switch 2 unit, but that's where industry insiders can at least give us a ballpark figure. Speaking to Bloomberg, Hideki Yasuda of Toyo Securities shared their thoughts on just how much money Nintendo has to put towards one Switch 2 to get it out to consumers.

"We believe the Switch 2's bill of materials is around $400, meaning Nintendo would still be selling consoles at a loss in the US with the 10% tariff — but the loss would be something Nintendo would be able to absorb."
Click to expand...
[Hideki Yasuda of Toyo Securities]

Just as Yasuda says, if all stays as-is right now, Nintendo will be selling Switch 2 at a loss. While not specifically stated, you'd imagine that figure is focusing on the Switch 2 base model. This definitely helps give some insight into what the Big N is spending to make the Switch 2 a reality.
Click to expand...
gonintendo.com

Securities firm believes Switch 2 costs $400 to make, Nintendo will sell at a loss

Gotta pay to play
gonintendo.com gonintendo.com
 
Not totally surprising. It's a beefier piece of kit than most people are giving it credit for. (Cough ^^^ cough)

Does this mark the first time Nintendo is selling their console at a loss?
 
Little Chicken said:
Which is why they developed the Welcome Tour and are selling it for $10, to absorb costs.
Click to expand...
Almost every console do this... so that is nintendo being greddy.

It's common for video game consoles to be sold at a loss initially, particularly when a new generation of consoles is launched. Companies like Sony and Microsoft, for example, lose money on each PS5 and Xbox Series X/S console sold, respectively. This strategy is used to establish a price point, gain market share, and build a larger user base, with the expectation of making up for the loss through game and subscription service sales.
 
Last edited:
I can see that but as a consumer, it's simply not my problem. I see the price point and see what they charge for games and "updates" and go "this whole thing is not cheap at all".
 
turntables GIF

We thought it would be sub PS4 but actually got XSS so I'm really happy with it. Nvidia came thru. The only issue I have is the game pricing and my issue with that is only with 1 game, Mario Kart. However, I can easily see why MK should sell higher than any other game they make. It's still like number 1 on charts about a decade and outsells new games all the time, usually in 1st or 2nd place overall. It is one of the most popular games of all time. With Nintendo games there is also not mtx bullshit(usually) or patches to wait for, it will be 100% quality on day 1, so I get it. 10 bucks extra for one game isn't enough to cry about honestly. Nintendo is not Ubishaft. Their games are actually good and also hold their value for resell. There is no way a modern ubisoft game should ever cost as much as a Nintendo game. Also Nintendo games aren't woke like every Ubisoft game, so I'll vote with my wallet and ignore the AC Shadows enjoyers trying to tell me how to enjoy gaming.

twistedvoxel.com

Street Fighter 6 On Nintendo Switch 2 Appears To Surpass Xbox Series S Visuals, Comparison Reveals

The Nintendo Switch 2 version of Capcom's Street Fighter 6 appears to surpass those of the Xbox Series S version in terms of visuals.
twistedvoxel.com twistedvoxel.com

 
Last edited:
Pop said:
400 for that

Man someone got ripped
Click to expand...

similarly powerful PC handhelds sell for $800... and they lack any ML hardware and don't have decent RT hardware either.

but yes, I bet Nvidia parts come at a premium compared to AMD
 
Last edited:
Mr Moose said:
Unless Nvidia are ripping them off (which, let's be honest, they probably are).
I'd like to see an actual breakdown of the parts prices.
Click to expand...
Nvidia is not cheap, thats why Sony stopped working with then but they are the best in the business and AMD is not even close… the Switch 2 use a custom made GPU especially made for Nintendo, its no like the Tegra X1 on the Switch 1.
 
The sentence doesn't make sense, how come it costs $400 and you sell it at a loss for $450?

Anyways Nintendo financials will reveal if they are selling it at loss or not. You will see that sweet margins lol
 
SweetTooth said:
The sentence doesn't make sense, how come it costs $400 and you sell it at a loss for $450?

Anyways Nintendo financials will reveal if they are selling it at loss or not. You will see that sweet margins lol
Click to expand...
You have to take distribution and marketing into consideration… and other things.
 
Last edited:
Pop said:
400 for that

Man someone got ripped
Click to expand...

Then break it down then. Your post also got a lot of likes, so I'm assuming you and those people are experts.

Break it down to how much the individual parts cost.

How much if the parts are bought in bulk, shipping fees, manufacturing fees, with possible tariffs on the horizon for the finished product.

So if 400 is a ripoff, explain in detail what should be the appropriate amount.
 
Mr Moose said:
Unless Nvidia are ripping them off (which, let's be honest, they probably are).
I'd like to see an actual breakdown of the parts prices.
Click to expand...
The Switch 2 is based on the Tegra Orin. It sits between the Jetson AGX 32GB and Jetson NX 16GB. Both of those cost $400 on the low end and $1200 on the high end and that's just for the SoC.

Now add the screen and controllers.
 
Last edited:
Gamerfan81 said:
Then break it down then. Your post also got a lot of likes, so I'm assuming you and those people are experts.

Break it down to how much the individual parts cost.

How much if the parts are bought in bulk, shipping fees, manufacturing fees, with possible tariffs on the horizon for the finished product.

So if 400 is a ripoff, explain in detail what should be the appropriate amount.
Click to expand...
That's the norm here, people pulling facts from their ass and nonsense theories…
 
Hudo said:
I can see that but as a consumer, it's simply not my problem. I see the price point and see what they charge for games and "updates" and go "this whole thing is not cheap at all".
Click to expand...
Gaming is still probably one of the least expensive enthusiasts hobbies, unless we count shit like knitting.
 
SweetTooth said:
The sentence doesn't make sense, how come it costs $400 and you sell it at a loss for $450?

Anyways Nintendo financials will reveal if they are selling it at loss or not. You will see that sweet margins lol
Click to expand...
Retailers cut and other expenses. The article talks about the cost before it gets into the market.
 
SweetTooth said:
The sentence doesn't make sense, how come it costs $400 and you sell it at a loss for $450?

Anyways Nintendo financials will reveal if they are selling it at loss or not. You will see that sweet margins lol
Click to expand...

Good lord, man, you're out here confidently trolling in every Switch 2 thread and you honestly don't even understand the basic reality that retailers take a cut of every unit sold?

Do you think Best Buy and GameStop are fucking charities?
 
Last edited:
SweetTooth said:
The sentence doesn't make sense, how come it costs $400 and you sell it at a loss for $450?

Anyways Nintendo financials will reveal if they are selling it at loss or not. You will see that sweet margins lol
Click to expand...
I think its:

$400 to manufacture

$40/45 tarrif

Over $10 for shipping, distribution and retailer cost
 
Last edited:
Hudo said:
I can see that but as a consumer, it's simply not my problem. I see the price point and see what they charge for games and "updates" and go "this whole thing is not cheap at all".
Click to expand...

Tombstone 4K UHD from Disney, distributed by Sony, is selling at $55 for preorders. The discounted $42 preorders at Amazon sold out. If movies are selling for this price, video games are cheap.
 
blacktout said:
Good lord, man, you're out here confidently trolling in every Switch 2 thread and you honestly don't even understand the basic reality that retailers take a cut of every unit sold?

Do you think Best Buy and GameStop are fucking charities?
Click to expand...
Easy man, I assumed it was factored in
 
SweetTooth said:
Easy man, I assumed it was factored in
Click to expand...
Why would retail cuts be factored into manufacturing costs…?

I honestly can't tell when you're trolling or not lol
 
blacktout said:
Good lord, man, you're out here confidently trolling in every Switch 2 thread and you honestly don't even understand the basic reality that retailers take a cut of every unit sold?

Do you think Best Buy and GameStop are fucking charities?
Click to expand...
In the Sweetooth mind… It costs $400 to make and if they sell it at $405 that's a $5 in profit… Proceed to comment 😅
YTcG0YJ.jpeg
 
I'm not surprised if Nintendo are losing money on NS2. It's quite impressive hardware for a handheld, lots of modern stuff in a very small form factor. That 120hz HDR screen ain't cheap. Plus you get a dock to that outputs 4K with seamless transitioning from tv to handheld. Not even PC handhelds where you pay 8-900$ you get a dock, you have to buy it separately and the hybrid transitioning doesn't work as flawlessly as Nintendos own solution. I honestly think 450 for everything that Nintendo is offering here is a steal.
 
Dacvak said:
Not totally surprising. It's a beefier piece of kit than most people are giving it credit for. (Cough ^^^ cough)

Does this mark the first time Nintendo is selling their console at a loss?
Click to expand...
Some people don't understand that if they want 4k or 120 fps it comes at a cost, especially for a handheld device
 
Dacvak said:
Not totally surprising. It's a beefier piece of kit than most people are giving it credit for. (Cough ^^^ cough)

Does this mark the first time Nintendo is selling their console at a loss?
Click to expand...
I'm sure they weren't making a dime when they marked the GameCube down to $99 a few years after it launched.
 
Last edited:
You must log in or register to reply here.

Similar threads

  • Locked
Toyo Securities estimates Switch 2 BOM $400 Nintendo selling at loss with 10% tariff
Business Analysis Platform 
5
396
GigaBowser replied
Bloomberg analysts anticipate Nintendo Switch 2 to be priced at $400 or more
Platform  2 3
114
6K
EN250 replied
  • Poll
Did Nintendo sell you on a Switch 2?
3 4 5 6 7
329
9K
Bond007 replied
  • Locked
At Over $400, Nintendo Switch 2 Still Expected to Break Sales Records
Analysis Sales-Age Hype 
26
1K
adamsapple replied
Nintendo Switch 2 Welcome Tour Will Be a Paid Tour of Your New Nintendo Switch 2
2 3
134
5K
Orbital2060 replied
Top Bottom