Nintendo Switch 2 could be being sold at a loss claim analysts
Despite its high cost, Nintendo could be making as little as £3 on each Switch 2 console sold, suggesting they literally couldn't make the new hardware any cheaper.
Nobody has been in the games business longer than Nintendo and while they've had their ups and downs, to put it mildly, they've never really been in any financial trouble, since they have vast reserves of cash (which prevents them from being taken over by other companies) and never sell their consoles at a loss – or at least almost never.
Most new consoles from Sony and Microsoft are sold at a loss at launch, only becoming profitable with later hardware revisions that simplify the manufacturing process. Despite what many fans think, Nintendo has done this too, with the 3DS and Wii U both being sold at a loss for a while.
There's no official information to judge what the situation is with the Nintendo Switch 2 but two different analysts suggest it's cutting things very fine, with one estimate claiming it's barely breaking even.
The Nintendo Switch 2 is being sold for £395.99. That's significantly more than the £279.99 the original Switch was at launch, and the subsequent OLED Model at £309.99.
However, most fans agree that it's not unreasonable, with many fearing it would be more, given inflation and the fact that the Switch 2 is bigger and more powerful than its predecessor.
Instead, it's the price of the games that's been the main point of contention, with Mario Kart World costing up to £75 for the physical version, although the digital edition is cheaper and fellow first party title Donkey Kong Bananza is cheaper still.
According to Toyo Securities analyst Hideki Yasuda, speaking to Bloomberg, the Nintendo Switch 2 costs around $400 in terms of raw materials. It's being sold in the US for $449.99, so that means that once you factor in manufacturing it may not be making a profit – so you can imagine how Nintendo felt when Trump started talking about tariffs.
Multiple other sources also suggest that the console is making little or no profit, with YouTuber Nintendo Prime suggesting that Nintendo may be making as little as $4 (£3) on each sale in the US.
Double Jump Games, who is getting 9 Switch 2 Units to sell, noticed in the order that Nintendo is basically making nothing in the US per unit. They make $4 per unit sold, Nintendo's costs basically match what it costs to be here. So next to no profit margin. — Nintendo Prime (@NintyPrime) April 28, 2025
Meanwhile, MST Financial analyst David Gibson, speaking to the Financial Times, claims that the unit price for Switch 2 consoles being manufactured in Vietnam, which have lower tariffs than those made in the US, is $338. More Trending
However, that's before things like shipping and transportation (and tariffs) are taken into account, so again it seems that if the Switch 2 is being sold at a profit it's a very small one.
Console manufacturers make money in two main ways, by selling their own exclusive games – which is a much more important avenue for Nintendo than for Sony or Microsoft – and for charging licencing fees to other publishers for releasing their games on the console.
Conversely, this is more important for Sony and Microsoft, since Nintendo consoles have traditionally had poor third party support. The Switch 2 seems to be much better supported so far, but that can quickly evaporate if the console is not an instant success or if customers simply don't buy the third party titles.
Whatever the profit figure is – and it will vary from country to country – it suggests that Nintendo is walking a narrow line and while the higher game prices are primarily because of the higher cost of making modern video games, they may also be the only way to make a profit in the short term.
Email gamecentral@metro.co.uk, leave a comment below, follow us on Twitter, and sign-up to our newsletter.
To submit Inbox letters and Reader's Features more easily, without the need to send an email, just use our Submit Stuff page here.
For more stories like this, check our Gaming page.
MORE: The 20 exclusive games that made Nintendo Switch the best console ever
MORE: Games Inbox: Is it weird to not like GTA games?
MORE: GTA 4 remaster coming to PS5 this year claims insider
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Metro
5 hours ago
- Metro
Nintendo Switch 2 outsells Switch 1 launch by over 100% but fails to beat PS5
Only a couple of UK retailers held midnight launches (Credits: David Parry/PA Media Assignments) The Nintendo Switch 2 has already sold over 160,000 consoles in the UK and become Nintendo's fastest selling console ever. Although there's still no official sales figures for the Nintendo Switch 2 everything points towards it being a massive worldwide success, selling more units in its first day than any other console. That'd certainly be an impressive feat, but Nintendo itself has yet to substantiate these claims. Earlier today, though, additional sales data has been shared, and it at least gives an indication of how the Switch 2 has performed here in the UK. Although no exact figures have been given, it's said that the Switch 2 has had the best UK launch of any Nintendo console ever. Although given the company's history in this country, it's difficult to know exactly what that means. The data comes courtesy of market research firm NielsenIQ, which shared its findings with The Game Business, adding that the Switch 2 outperformed the Switch 1 by more than two to one. On top of that, it outperformed the Nintendo 3DS, which was the original record holder for the biggest Nintendo hardware launch in the UK. For the record, the Switch 1 managed 80,000 units in the UK at launch while the 3DS sold 113,000 units. So the implication is that the Switch 2 sold over 160,000 consoles. Expert, exclusive gaming analysis Sign up to the GameCentral newsletter for a unique take on the week in gaming, alongside the latest reviews and more. Delivered to your inbox every Saturday morning. The only Switch 2 figures we have so far are from Currys, which says it sold 30,000 pre-orders at its stores, which they seemed to be very happy with. PlayStation consoles have always been more popular in the UK (Sony) NielseinIQ adds that this only makes the Switch 2 the fourth best-selling console launch in the UK, trailing behind the Xbox Series X/S, the PlayStation 4, and especially the PlayStation 5. Coming out in the middle of lockdown, the PlayStation 5 was a huge deal in the UK, when it launched in 2020, and went on to become the country's best selling console in 2021. As The Game Business points out, the original Switch and the Wii had weaker launches in the UK than the PlayStation 3 and Xbox One. The UK has always been Nintendo's weakest international market, which can be traced all the way back to the original NES from the 1980s. Not only did the UK not receive the console until 1987 – four years after its initial Japanese launch and two years after the US – but it and its games were badly overpriced and little effort was made in converting it for PAL televisions. Nintendo didn't even have a proper UK headquarters at that time and it wasn't until the GameCube that they started taking the region seriously, with the Wii and DS being the first time that Nintendo's success in the UK mirrored that of the rest of the world. The good news for Nintendo is that things have been steadily improving since then and doubling the Switch 1's debut is quite a feat. In the run up to the Switch 2's release, some analysts predicted it would be the biggest console launch ever, although Nintendo is only aiming to sell slightly more than the original Switch managed in its launch period. This more conservative outlook can likely be chalked up to Nintendo opting to play things safe due to all the uncertainty caused by US president Donald Trump's tariffs. Plus, it looks better for them if they easily beat their goals. A lot of people queued up for the Switch 2's midnight launch in the UK (Credits: David Parry/PA Media Assignments) Email gamecentral@ leave a comment below, follow us on Twitter. To submit Inbox letters and Reader's Features more easily, without the need to send an email, just use our Submit Stuff page here. For more stories like this, check our Gaming page. Arrow MORE: Mario Kart World review – the final verdict on the Switch 2's biggest game Arrow MORE: Nintendo Switch 2 Welcome Tour review – the dullest Nintendo game ever made Arrow MORE: New Splatoon game coming to Nintendo Switch 2 – plus massive Splatoon 3 update
Daily Mail
5 hours ago
- Daily Mail
Microsoft pulls major conference from Seattle over safety fears
Seattle's reputation as a center for global innovation is in tatters as the Democrat-run city's rampant crime and drug-addled homeless problem has driven a major tech conference out of the Pacific North West for first time in almost a decade. Microsoft will relocate its flagship Build conference from 2026 following mounting concerns over dystopian scenes of open-air drug markets and violence, which have dramatically changed the character of Seattle since the company's first conference in the city in 2017. The decision, confirmed in a statement from the company, follows mounting concerns over public safety, visible drug use, and deteriorating conditions in the city's downtown. This year's event also faced disruptions when pro-Hamas protesters vandalized the convention center and attempted to enter the venue. An internal email from Visit Seattle, the city's tourism agency, said that both Microsoft leadership and event attendees had expressed alarm about the downtown area surrounding the Hyatt Regency and the Arch Building on 8th Street - key locations for the annual developer conference. 'The customers cited the general uncleanliness of the street scene, visibility of individuals engaging in drug use, and unhoused individuals, including the recurring tent in the Arch Tunnel,' the email, obtained by journalist Jonathan Choe, stated. Despite efforts to keep the conference in the city by Visit Seattle and local authorities - including the Seattle Police Department, the Downtown Seattle Association, and the city's Care Team - Microsoft's concerns ultimately proved decisive. 'Unfortunately for Build, it was a contributing factor to their final decision to move out of Seattle,' the agency wrote. The loss of Build represents a significant hit to Seattle's convention and tourism economy, which has long relied on major tech events to draw visitors and business. Seattle restaurateur David Meinert also confirmed the news in a Facebook post, citing feedback from attendees about the open-air drug use, the large number of tents lining the streets, and the aggressive homeless population. 'Mayor Bruce Harrell's downtown activation plan is not having the success he claims,' Meinert wrote. 'I can tell you firsthand how poorly the massive spending on different city agencies is going, due to the inability for them to communicate and work together. It's 100% about lack of leadership.' Microsoft acknowledged the change in a formal statement: 'Our plans for Build 2026 have changed, but our vision to empower builders and developers at a major event next year remains the same. We thank the city and the community for their support over the years.' Build has been held in Seattle since 2017, drawing thousands of developers and tech leaders from around the world. Its departure underscores growing unease among corporate leaders about the state of downtown Seattle. The Build conference typically attracts thousands of developers from around the world. Acknowledging the impact of the decision, Visit Seattle described Microsoft's departure as a 'huge loss for the city.' This development follows a pattern of businesses leaving downtown Seattle. Starbucks has closed several stores, with former CEO Howard Schultz attributing the closures to public safety issues and what he termed failed leadership . 'At the local state and federal level, these governments... and leaders, mayors and governors, and city councils have advocated their responsibility in fighting crime & addressing mental illness,' Schultz stated. Other major retailers, including Target, Nike, and Hard Rock Cafe , have also closed their downtown locations. Amazon Go has similarly shut down its stores in the area, citing underperformance. The situation has drawn comparisons to San Francisco, another city that has faced challenges with crime, homelessness, and business retention. In May, Seattle was the site of violent clashes between Christian activists and counter-protesters. The Seattle Police Department (SPD) reported 23 arrests at a 'Mayday USA' rally. 'Police working to keep two different groups apart, witnessed multiple people inside one group throw items at the opposing group,' SPD said. 'Officers immediately moved to arrest the people responsible... resulting in even more arrests.' Public safety in Seattle has been a contentious issue for several years. In 2020, then-Police Chief Carmen Best expressed a desire for officers to return to the East Precinct, which had been abandoned during protests that led to the creation of the 'Capitol Hill Autonomous Zone' (CHAZ). Her stance contrasted with that of then-Mayor Jenny Durkan, who favored a more hands-off approach. When asked how long she anticipated the protest zone would last, Durkan told CNN, 'I don't know. We could have a summer of love.' The 'autonomous zone' was established after clashes between police and protesters following the death of George Floyd, during which law enforcement used crowd control measures such as stun grenades and tear gas. While some reports described lawlessness in the CHAZ, authorities at the time also noted a 'block party atmosphere.' Protesters stated their intention to occupy the area until their demands, including police funding cuts, were met.
Daily Mail
6 hours ago
- Daily Mail
Microsoft pulls major tech conference from dystopian Democrat city over rampant crime and drug-addled homeless
Seattle's reputation as a center for global innovation is in tatters as the Democrat-run city's rampant crime and drug-addled homeless problem has driven a major tech conference out of the Pacific North West for first time in almost a decade. Microsoft will relocate its flagship Build conference from 2026 following mounting concerns over dystopian scenes of open-air drug markets and violence, which have dramatically changed the character of Seattle since the company's first conference in the city in 2017. The decision, confirmed in a statement from the company, follows mounting concerns over public safety, visible drug use, and deteriorating conditions in the city's downtown. This year's event also faced disruptions when pro-Hamas protesters vandalized the convention center and attempted to enter the venue. An internal email from Visit Seattle, the city's tourism agency, said that both Microsoft leadership and event attendees had expressed alarm about the downtown area surrounding the Hyatt Regency and the Arch Building on 8th Street - key locations for the annual developer conference. 'The customers cited the general uncleanliness of the street scene, visibility of individuals engaging in drug use, and unhoused individuals, including the recurring tent in the Arch Tunnel,' the email, obtained by journalist Jonathan Choe, stated. Despite efforts to keep the conference in the city by Visit Seattle and local authorities - including the Seattle Police Department, the Downtown Seattle Association, and the city's Care Team - Microsoft's concerns ultimately proved decisive. 'Unfortunately for Build, it was a contributing factor to their final decision to move out of Seattle,' the agency wrote. The loss of Build represents a significant hit to Seattle's convention and tourism economy, which has long relied on major tech events to draw visitors and business. Protesters remove a man because he was bothering other protesters at the self-proclaimed Capitol Hill Autonomous Zone (CHAZ) during a protest against racial inequality and call for defunding of Seattle police on in June 2020 Seattle restaurateur David Meinert also confirmed the news in a Facebook post, citing feedback from attendees about the open-air drug use, the large number of tents lining the streets, and the aggressive homeless population. 'Mayor Bruce Harrell's downtown activation plan is not having the success he claims,' Meinert wrote. 'I can tell you firsthand how poorly the massive spending on different city agencies is going, due to the inability for them to communicate and work together. It's 100% about lack of leadership.' Microsoft acknowledged the change in a formal statement: 'Our plans for Build 2026 have changed, but our vision to empower builders and developers at a major event next year remains the same. We thank the city and the community for their support over the years.' Build has been held in Seattle since 2017, drawing thousands of developers and tech leaders from around the world. Its departure underscores growing unease among corporate leaders about the state of downtown Seattle. The Build conference typically attracts thousands of developers from around the world. Seattle restaurateur David Meinert also confirmed the news in a Facebook post, citing feedback from attendees about the open-air drug use, the large number of tents lining the streets, and the aggressive homeless population Acknowledging the impact of the decision, Visit Seattle described Microsoft's departure as a 'huge loss for the city.' This development follows a pattern of businesses leaving downtown Seattle. Starbucks has closed several stores, with former CEO Howard Schultz attributing the closures to public safety issues and what he termed failed leadership. 'At the local state and federal level, these governments... and leaders, mayors and governors, and city councils have advocated their responsibility in fighting crime & addressing mental illness,' Schultz stated. Other major retailers, including Target, Nike, and Hard Rock Cafe, have also closed their downtown locations. Amazon Go has similarly shut down its stores in the area, citing underperformance. The situation has drawn comparisons to San Francisco, another city that has faced challenges with crime, homelessness, and business retention. In May, Seattle was the site of violent clashes between Christian activists and counter-protesters. The Seattle Police Department (SPD) reported 23 arrests at a 'Mayday USA' rally. 'Police working to keep two different groups apart, witnessed multiple people inside one group throw items at the opposing group,' SPD said. 'Officers immediately moved to arrest the people responsible... resulting in even more arrests.' Public safety in Seattle has been a contentious issue for several years. In 2020, then-Police Chief Carmen Best expressed a desire for officers to return to the East Precinct, which had been abandoned during protests that led to the creation of the 'Capitol Hill Autonomous Zone' (CHAZ). Her stance contrasted with that of then-Mayor Jenny Durkan, who favored a more hands-off approach. When asked how long she anticipated the protest zone would last, Durkan told CNN, 'I don't know. We could have a summer of love.' The 'autonomous zone' was established after clashes between police and protesters following the death of George Floyd, during which law enforcement used crowd control measures such as stun grenades and tear gas. While some reports described lawlessness in the CHAZ, authorities at the time also noted a 'block party atmosphere.' Protesters stated their intention to occupy the area until their demands, including police funding cuts, were met.
