Here’s How Much Nintendo Spends for Each of Its Switch Console



Japanese teardown company Fomalhaut Techno Solutions have revealed the estimate cost of Switch console, and it appears that Nintendo isn’t gaining big



Ever had a feeling of the Switch console being overpriced or under-priced? You can decide for yourself, as the estimate cost for the latest gaming console from Nintendo has now been revealed.

According to the Japanese teardown company Fomalhaut Techno Solutions, a single unit of the Switch console accounts to a cost of $257 for the Japanese company. The retail price of Nintendo Switch is around $300, which means that Nintendo isn’t making a huge profit in each sale.

Of the entire pricing, the majority is contributed by the main tablet unit including the touchscreen, the processor and the dock. The three of these costs $167 to the manufacturer according to the estimates that was published earlier. And among those, it’s the Nvidia processor that comes with next-gen power supply that costs the most.

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The Joy-Controllers cost $45 per unit, making the total cost $90. To recall, a single Joy-Con unit retails at $50. So again, Nintendo isn’t earning big with the sale of its individual Joy-Con units either. Assuming the report to be correct, it’s quite a surprise that Nintendo garners only a small profit for even its controllers, which traditionally makes a better cut in the market for the manufacturers.

Nintendo has earlier mentioned that it won’t be selling Switch at a loss. Pair that with the above estimate, and you can expect the pricing of Switch not to go down anytime soon.

via Polygon

 

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Author: Akhil Unnikrishnan

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