Apr 4th, 2017

According to Japanese tech firm Fomalhaut, who tears down consumer electronics and figures out what it costs to manufacture, and their new report says that Switch manufacturing costs are $257 per console.

Nintendo has previously said that it would sell the Switch at profit on day one, and they seem to be making a small profit on each console sold. In addition to the $257 Switch manufacturing cost, there is packaging and transportation, and then the retailers also take a cut of the final price (MSRP is $299).

By comparison, both Sony and Microsoft sold their consoles at a loss when they launched back in 2013. Way back in 2005, Sony famously took a $300 loss on each PS3 console sold.

Nintendo last console, the Wii U, cost $180 to manufacture, as we reported almost five years ago.

It’s been common for console makers to take a loss on each console sold, and make up the difference in licensing fees to game publishers. For each $60 game that a publisher sells, $12 goes to the platform holder (Sony/Microsoft/Nintendo).

In addition to estimating the cost of the Switch, Fomalhaut also says they expect Nintendo to sell 30 million Switch consoles by the end of 2018.

local_offer    Switch