Securities firm believes Switch 2 costs $400 to make, Nintendo will sell at a loss
There’s been much talk about the Switch 2 in terms of price. Nintendo has said they’ll be selling the base Switch 2 for $450 and a bundle with Mario Kart World for $500. That could change depending on what Nintendo does with the tariffs situations in North America right now, although it looks like the Big N will have at least a 90 day reprieve on that front. For the sake of argument, let’s say Switch 2 stays at $450/$500. Ever wonder how much it costs to make a Switch 2?
Nintendo hasn’t shared information on how costly it is to produce one Switch 2 unit, but that’s where industry insiders can at least give us a ballpark figure. Speaking to Bloomberg, Hideki Yasuda of Toyo Securities shared their thoughts on just how much money Nintendo has to put towards one Switch 2 to get it out to consumers.
“We believe the Switch 2’s bill of materials is around $400, meaning Nintendo would still be selling consoles at a loss in the US with the 10% tariff — but the loss would be something Nintendo would be able to absorb.”
[Hideki Yasuda of Toyo Securities]
Just as Yasuda says, if all stays as-is right now, Nintendo will be selling Switch 2 at a loss. While not specifically stated, you’d imagine that figure is focusing on the Switch 2 base model. This definitely helps give some insight into what the Big N is spending to make the Switch 2 a reality.
There has been some pushback from gamers on Switch 2 pricing, with a specific group saying Nintendo is being greedy with the price, and it’s too costly for what they deem to be outdated hardware. Now with Toyo Securities chiming in with their estimate, we have the other perspective of that debate.
