Nintendo Switch Manufacturing Cost is $257 – Report

Japanese teardown firm analyzes the Switch.

Posted By | On 04th, Apr. 2017 Under News


When the Nintendo Switch was first announced, many balked at the $300 asking price. Of course, given the number of features it boasted (though that doesn’t forgive the features it lacked), it made sense but $250 was considered to be the sweet spot several months prior.

It seems that Fomalhaut, a Japanese firm that does teardowns, may have the answer. In a new article on Nikkei Technology (courtesy of Wall Street Journal’s Takashi Mochizuki on Twitter), Fomalhaut estimated that the overall manufacturing cost for the Switch was $257. It also speculated that Nintendo would sell 30 million units by 2018 end, which lines up with reports that the company has doubled production of the Switch heading into next year.

Though the Switch has seen its share of problems, it’s seen fairly good success across the world, selling 500,000 units in Japan faster than the PS4. What are your thoughts on the console till now? Let us know below.


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  • Mark

    So they’re making what, $43 bucks in profit per console? I wonder what MS and Sony are getting vs cost per machine?

    • My Name

      When the PS4 and XBOX1 first came out they were selling them at a loss.

  • parrotcam

    does this take into R&D, shipment costs, advertising, retailer profit share, and other costs?

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  • Mavericks

    It costs too much for them to build Switch and they have a problem called Nividia.

    The Xbox 360 Uncloaked: the Real Story Behind Microsoft’s Next‑Generation Videogame shows how hard was to deal with them to drive costs of the Xbox 1 GPU. They don’t own the intellectual property of the chips with Nvidia, like the relationship that Sony and MS have now with AMD where they can redesign the chip themselves if they want to (like Nintendo once had with ATI).


 

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