Japanese company estimates Nintendo Switch costs $257 to produce

Tatsumi Kimishima promised the Switch would not be selling at a prior loss

Last year, when the Switch was still known under the codename NX, Nintendo president Tatsumi Kimishima held a Q&A session during an investors meeting, in which he said that their hardware system would not be selling at a prior loss. Since then, the Switch hit the stores at a retail price of $299/£279/€299. So how much exactly does the game console cost to produce and is Nintendo still making a profit out of it?

Well, Japanese firm Fomalhaut tore down the Switch, listed its components and estimated a total manufacturing cost at $257. Which leaves a margin of $42 per unit going back into the pockets of Nintendo. Of course, you’d have to deduce the development, marketing, running costs and probably a bunch of other costs to know precisely how much profit Nintendo is making for each unit sold. But they’re definitely not selling at a loss. An info that will definitely please shareholders and might even reflect on the stock value of the company.

In addition, Fomalhaut estimates that Nintendo will sale about 30 million units by the end of 2018.

 

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