The manufacturing cost of the Switch 2 is US $338 (Data from Vietnam)

Yeah makes sense.

Shocked to see how many people here don't understand that there's costs beyond the $338 though lol. I'd expect it on Twitter but y'all really spend all day posting on a gaming forum and still don't understand this shit eh?

Seems they're making a bit of profit off each unit which is expected and probably sustainable.
 
Clearly, no matter what evidence is provided, the narrative that console warriors have built for themselves that Nintendo is selling overpriced old hardware with the Switch 2 is not going to change.

Dog Defi GIF by Hoge Finance
 
Damn. Some people on here not understanding how any of this works. At least there are some intelligent people talking about shipping. Landing costs. Forwarders. Storage and profit for retailers.

Others.... smdh
 
Tg89 said:
Yeah makes sense.

Shocked to see how many people here don't understand that there's costs beyond the $338 though lol. I'd expect it on Twitter but y'all really spend all day posting on a gaming forum and still don't understand this shit eh?

Seems they're making a bit of profit off each unit which is expected and probably sustainable.
Click to expand...
I think that some people are going to shitpost everything related to the Switch 2… You know the Console Warriors.
 
Jinxed said:
Usually you don't make profits at release with consoles, you take a hit and make profits with games and then later on you can lower the hardware cost with changes and you're no longer at a loss.

Nintendo? Nah fuck gamers, I make profits on consoles AND games right now.

And there's suckers here who defend this crap 😅
Click to expand...
Look, another person who believes the manufacturing cost is the only cost that goes into the retail price.
 
LordOcidax said:
Assuming 10% tariffs alone (I think is higher for Vietnam) that's +$38 + Packing + $5 + shipping + $5 + 20% retailers cut… I think Nintendo is losing on retailers but direct sales from Nintendo they have a little of gain.
Click to expand...

I'm pretty sure Vietnam currently has the standard 10% tariff rate. But it was originally something like 43% before the 90 day pause, so there's definitely a chance it could go higher.

Packaging is an interesting question, since I honestly don't know if that happens before or after it arrives in the US, which would be relevant, since this price is based on customs data.

There are also distribution costs beyond what it costs to ship the system from Vietnam to the US, and, of course, marketing costs, though those can be recouped through software sales and don't necessarily have to be figured into the cost of the console itself.

Still, no matter how you do the math, I don't see how anyone could argue that Nintendo is making much of a profit on each system sold. They're probably hovering right around the break even point depending on how tariffs and exchange rates play out. That's fine though, because they're going to make a killing on software.
 
For generations, it was said Nintendo never sold hardware at a loss. Sony, at 1 point, said they do sell it for a loss, but if you buy a game and a month of ps+ (something like that), then it would make a profit on a console sale. I'm not sure about Microsoft, but I'd assume they are like Sony.

It says about half are coming from Vietnam and Cumbria and were sent to the Nintendo in the US. It also states wrongly that the cost to manufacture it is $338 and the sale price might need a hike as its only $399, but the sale price was always $449 with no game and $500 with Mario.
 
around 340$ not including
- packaging
- shipping
- marketing
- Retail stores' profit
- Nintendo's profit

I would say 450$ to be honest is a fair price, assuming these costs are legit.

I do wonder if it's even cheaper in China to make ( outside of tariffs )
 
DryvBy said:
Retailers don't take a big cut. In fact, the PS2 era stores were making around $1 per console. The console drives customers into the store to buy the accessories which have huge markups.
Click to expand...
The standard cut from retailers is around 20%, when they have offers or want to clean the inventory is another story… But im pretty sure the retailers are not going to gain just $1 dollar with the Switch 2.
 
Last edited:
LakeOf9 said:
The first one felt like a big improvement over the Wii U Gamepad, which was he actual fisher pice toy lol

But yes, good to see Nintendo didn't cheap out on cost this time
Click to expand...
Not power-wise. The Wii U and Switch were very close in power, similar to GameCube and Wii. Obviously, the big deal was the full portability.

Switch 2 is a huge step up from Switch. There's just no big gimmick.
 
Last edited:
LordOcidax said:
🙄 25% is not the profit margin at all… And your maths are wrong to in this equation…
Click to expand...
Do you know how to read? I said it obviously doesn't include all the costs, it was a rough figure for illustrating my point that their margin is significant. And yes, that is how you calculate a profit margin: (Revenue-Costs)/Revenue so (450-338)/450 = 0.2488888888 which is 24.88%.
 
Boss Mog said:
Do you know how to read? I said it obviously doesn't include all the costs, it was a rough figure for illustrating my point that their margin is significant. And yes, that is how you calculate a profit margin: (Revenue-Costs)/Revenue so (450-338)/450 = 0.2488888888 which is 24.88%.
Click to expand...
First you should add Packaging, Distribution, , Taxes, Marketing, Retail Cut, etc to have the profits margin for Nintendo… 24.88% is far off.
 
DenchDeckard said:
Damn. Some people on here not understanding how any of this works. At least there are some intelligent people talking about shipping. Landing costs. Forwarders. Storage and profit for retailers.

Others.... smdh
Click to expand...
Wait until you see a headline news on a big gaming website: " Nintendo about to earn US$112 with every Switch 2 sold"…
 
Jinxed said:
Usually you don't make profits at release with consoles, you take a hit and make profits with games and then later on you can lower the hardware cost with changes and you're no longer at a loss.

Nintendo? Nah fuck gamers, I make profits on consoles AND games right now.

And there's suckers here who defend this crap 😅
Click to expand...

Nintendo doesn't have several other units like Microsoft and PlayStation to cover the gaming unit. By the way, at GamersNexus when they did the tariffs investigation computer builders said retailers had 25% margin over price, doubt it's as high here but that would put it extremely close to the sale price.
 
Last edited:
Jinxed said:
Usually you don't make profits at release with consoles, you take a hit and make profits with games and then later on you can lower the hardware cost with changes and you're no longer at a loss.

Nintendo? Nah fuck gamers, I make profits on consoles AND games right now.

And there's suckers here who defend this crap 😅
Click to expand...
Business tries to make money, HOW DARE IT
 
LordOcidax said:
Yes, they want to make a big Switch 2 user base in Japan ASAP and made a lot of sense.
Click to expand...
To put this in perspective for people, in the US and Europe Switch 2 is noticeably cheaper than the launch PS3 price. But in Japan, the international version is noticeably more expensive than the launch PS3 price.

The language locked Switch 2 is a way for Nintendo to have the Switch 2 in Japan be a decentish price, without it being exported. And even then it's the same price as the PS5 was at launch.
 
LordOcidax said:
According to a Switch 2 data from Vietnam (others expenses as packing and transportation costs not included)

"because the Vietnam export data lists the Switch 2 unit price for custom duties as $338"

Source

Click to expand...
Won't Nintendo's accounts show the BoM to be 2/3rds to half that amount, because assuming they order 20M just for launch, the cost including design would mean a large $4 billion dollar cost being paid to Nvidia if the chip is +$200 as the largest cost - as being estimated for the custom T239 chip on N6 - but +$200 a chip sounds more like a small/medium OEM price for a company ordering 10K, not a company ordering batches of 20M.

I think estimates of the custom T239 chip over $150 are Nintendo PR fiction, and if the T239 is $150 or less - like I believe - I'm not buying a story that has a BoM more than double that.
 
Boss Mog said:
Do you know how to read? I said it obviously doesn't include all the costs, it was a rough figure for illustrating my point that their margin is significant. And yes, that is how you calculate a profit margin: (Revenue-Costs)/Revenue so (450-338)/450 = 0.2488888888 which is 24.88%.
Click to expand...
lol why bother posting a number at all if you've considered practically nothing about it?
 
mckmas8808 said:
I thought they took a 10% cut.
Click to expand...

Historically consoles would have been a lower retail cut than most products - idea being that those customers will come back and buy games/accessories.

With how much things have shifted to digital, I'd imagine some retailers have changed their tune on this though. Not sure where it would stand nowadays.

Keep in mind the retailer is also responsible for getting the system to individual stores/deliveries, so they eat a cost there as well.
 
Last edited:
Sebastian1295 said:
They're making up for the cost to produce this thing by charging 80 dollars for a standard mario kart game and 70 dollars for a 3D donkey kong game that has a god awful artstyle. Add in the overpriced accessories they're selling and nintendo online subscriptions, and they're robbing folks blind and making bank.
Click to expand...
images


The console price was always a good deal.
 
tkscz said:
Not how business works. When you add in cost to distribute, what retailers charge, and taxes/tariffs (tariffs have always been a thing so I'm not talking the raised ones) it could be close to breaking even or even being sold at a loss.
Click to expand...
Valid point, but Playstations and Xbox (don't pin me down on that, it's just as far as I know) manufacturing costs were way higher 2020 (estimated at around 450$ per PS5 unit) and the margin way smaller. Also not including the points you mentioned. Nintendo has always made way more financial gain than the competition just by selling the hardware itself.
 
LakeOf9 said:
The first one felt like a big improvement over the Wii U Gamepad, which was he actual fisher pice toy lol

But yes, good to see Nintendo didn't cheap out on cost this time
Click to expand...


Seems like it was pretty durable to me...still turned on after being dropped from 1000 feet
 
Sebastian1295 said:
They're making up for the cost to produce this thing by charging 80 dollars for a standard mario kart game and 70 dollars for a 3D donkey kong game that has a god awful artstyle. Add in the overpriced accessories they're selling and nintendo online subscriptions, and they're robbing folks blind and making bank.
Click to expand...
I'm confused. I thought the Switch 2 was supposed to be cheap junk that Nintendo were making a huge profit on, and according to you should launch at $250 max.
 
Power Pro said:


Seems like it was pretty durable to me...still turned on after being dropped from 1000 feet
Click to expand...

Yeah I dunno, outside of the joycon drift they were fine. My launch unit is still in pristine condition having been used heavily, travelled with, etc.

Some people just don't take care of shit or are generally kind of disgusting though. But outside of freak accidents or your Switch being used by a 3 year old, probably shouldn't be a problem.
 
Havent had a Ninty console since SNES.

But I'm tempted to get it just for any new Super Mario 2D and 3D games and Smash Bro. Thats probably kind of it. I totally suck at Smash Bro but playing it on my bro's kids Switch it is button mashing fun. I never got the hang of being blasted off screen and then making it back to grab a ledge and keep going on. lol
 
vodka-bull said:
Valid point, but Playstations and Xbox (don't pin me down on that, it's just as far as I know) manufacturing costs were way higher 2020 (estimated at around 450$ per PS5 unit) and the margin way smaller. Also not including the points you mentioned. Nintendo has always made way more financial gain than the competition just by selling the hardware itself.
Click to expand...
Ps5 stopped selling at a loss in 2021 iirc.

Nintendo fans
Kill Count Boot Licker GIF by Dead Meat James
 
Mibu no ookami said:
Anyone could have put this together based on what they were selling it for in Japan.

Massively overpriced outside of Japan.
Click to expand...

Ah yes, the good old "let's sell our product for BOM cost and not factor anything else into it, especially not R&D, as we are a charity and not a business that is looking for profit" comment
 
They are not subsidizing it in Japan, just forgoing upfront profits on the hardware. The west is being cucked.
 
Last edited:
You must log in or register to reply here.

Similar threads

  • Locked
Nintendo shifted Switch 2 production from China to Vietnam/Cambodia to avoid tariffs but The U.S. will tariff products from Vietnam at a 46% rate
2
77
3K
Scrawnton replied
Nintendo is suing the accessory manufacturer that showed off Switch 2 early
2 3
144
927
BlackTron replied
Status of compatibility tests for Nintendo Switch games on Nintendo Switch 2 (Updated May 27, based on testing data from April 24, 2025)
27
130
kevboard replied
How to Transfer Nintendo Switch System Data to Nintendo Switch 2
Platform 
0
50
hemo memo replied
Switch 2 to cost €469 in Europe, €509 with MK9
1
929
Kerotan replied
Top Bottom