Analyst Suggests Nintendo Losing Over $100 on Cheaper Switch 2 Version for Japan
A financial analyst estimates that Nintendo might be taking a substantial loss, potentially over $100, on each unit of the more affordable Nintendo Switch 2 model exclusively sold in Japan.
Hideki Yasuda of Toyo Securities calculates this loss to be around ¥25,000 (approximately $160) per console. Japan currently offers two versions of the new console: a Japan-language only model priced around $330, and a multi-language, region-free version available for about $450 through various retailers. Yasuda notes that the more budget-friendly option is the dominant seller among Japanese consumers.
Yasuda's analysis stems from Nintendo's financial report for the third quarter of the fiscal year ending March 2026. While the company reported impressive revenue growth of 99.3% and a 21.3% increase in operating profit year-over-year, he points out that profit margins are expanding slower than sales. He attributes this disparity to the high volume of sales for the cheaper Switch 2 in Japan.
Since its launch, 4.78 million consoles have been sold in the country. Yasuda estimates the manufacturing cost of a single Switch 2 console to be approximately $400. This includes around $300 for semiconductors, such as the Nvidia GPU and memory, with over $80 allocated for the battery and casing.
Considering an estimated wholesale price of about ¥41,000, this calculation suggests a loss of approximately ¥25,000 per console for Nintendo on these specific units, highlighting a potential strategic move to capture market share at the expense of initial hardware profit.
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