The Nintendo Switch, that is currently priced at $299, only takes roughly $257 to manufacture according to Formalhaut (a Japanese teardown company). This makes Nintendo a profit of $42 for every Switch sold, which makes up to be a hefty amount as the Switch has sold quite a lot since launch.
Nintendo had already confirmed at the Switch reveal that its latest console/handheld hybrid will not be sold at a loss like the Wii U. The Switch would be priced at a higher amount than the cost it would take to manufacture it. This might be the result of the poor sales of the Wii U that caused Nintendo quite a loss.
Even though the Wii U had an impressive library of games, the Switch is already toppling it as it sold more than a whopping 500,000 units in the first month of launch in Japan! That is even greater than the number of PS4 units sold in the same amount of time in Japan.
According to the same firm Formalhaut, it is expected that the Switch will sell somewhere around 30 million units before the end of 2018. The Switch also had a problem of under-production as many people could not get their hands on it since stores had them out of stock.
The Switch has a great deal of exclusives and third-party games coming to it later this year and that is sure to get Nintendo’s (already great) sales to be pumped quite a lot. Hopefully, this will also make sure that the problems in the console are fixed such as dead pixels and console warping.
More production will iron out these issues as the demand for more units increases. Games like Super Mario Odyssey and Skyrim for the Switch is definitely going to make more people interested in the console. Stay tuned for more on Nintendo Switch!