The Manufacturing Cost of the Switch Has Been Revealed
While we’ve known for a while that Nintendo was selling the Switch for profit since it’s launch last month, we haven’t been privy to the information about the manufacturing costs involved. It has now been revealed how much it costs to make the Nintendo Switch, and by extension, approximately how much money Nintendo makes with the sale of each console!
According to Nikkei Technology, a Japanese website, the Switch costs approximately $257 USD to make, which means that excluding all other costs, Nintendo makes a total profit of $40 USD on each unit sold! This information was revealed in a new report from Fomalhaut, a Japanese firm, that also speculates about the potential success of the Switch. While other analysts have predicted that Nintendo will sell 40 million consoles by 2020, Fomalhaut believes it will beat that number, selling 30 million units by 2018!
If the Switch does this well, that is amazing news for Nintendo, especially following the disappointing sales of the Wii U. As the years go by, Nintendo should be able to manufacture the console for less, which will increase their profits. You never know, with the fierce competition in the PS4 Pro, and Project Scorpio, Nintendo may need to offer a price drop at some point down the line. Or maybe that’s just wishful thinking.
Of course in the meantime, in order to maintain this huge success, Nintendo will need to continute adding more games to the Switch’s collection, and high calibre games at that, similar to The Legend of Zelda: Breath of the Wild.
Keep it locked for updates on the Nintendo Switch as they become available.