{"id":62504,"date":"2026-03-10T12:43:32","date_gmt":"2026-03-10T03:43:32","guid":{"rendered":"https:\/\/automaton-media.com\/en\/?p=62504"},"modified":"2026-03-10T12:43:34","modified_gmt":"2026-03-10T03:43:34","slug":"the-switch-2s-cheaper-japan-only-model-may-be-generating-loss-of-160-per-unit-for-nintendo-japanese-analyst-says","status":"publish","type":"post","link":"https:\/\/automaton-media.com\/en\/news\/the-switch-2s-cheaper-japan-only-model-may-be-generating-loss-of-160-per-unit-for-nintendo-japanese-analyst-says\/","title":{"rendered":"The\u00a0Switch 2\u2019s\u00a0cheaper, Japan-only model\u00a0may be\u00a0generating\u00a0loss\u00a0of $160 per unit\u00a0for Nintendo,\u00a0Japanese analyst\u00a0says\u00a0"},"content":{"rendered":"\n

In Japan, the Nintendo Switch 2<\/strong> launched with two distinct SKUs, one being a cheaper, Japanese-language only model sold at retail (for about $330 USD), and a non-region locked multi-language model sold through the My Nintendo Store (priced at about $450). According to Toyo Securities analyst Hideki Yasuda, the affordable SKU, which is the popular choice among Japanese consumers<\/a>, is generating a significant loss for Nintendo, estimated at about 25,000 yen or $160 USD per unit. <\/p>\n\n\n\n

Writing for Diamond Online<\/a>, Yasuda analyzed Nintendo\u2019s recently published financial results<\/a> for the third quarter of the fiscal year ending March 2026. The company reported year-on-year growth in revenue and operating profit by 99.3% and 21.3% respectively, but Yasuda notes that the profit margin is lagging when compared to sales. He speculates that the reason for this is the Switch 2\u2019s strong domestic sales. <\/p>\n\n\n\n

In Japan, the console has sold 4.78 million units since launch, and while there’s no breakdown available between the two SKUs, Yasuda speculates that sales of the Japanese-language only model are bringing down the console\u2019s profitability, and as a result, Nintendo\u2019s companywide profit margins. <\/p>\n\n\n\n

\"Nintendo<\/figure>\n\n\n\n

He estimates that the Switch 2 costs around $400 to produce, which includes approximately $300 for semiconductors, such as Nvidia’s GPU and memory (the prices of which have recently surged), over $80 for the battery and casing, and other costs including manufacturing fees. Assuming Nintendo’s wholesale price to retailers is about \u00a541,000, this suggests a loss of around \u00a525,000 per unit (about $160 USD). Additionally, he notes that Japan’s lower attach rates (number of software units sold per hardware unit) compared to Europe and America are another factor squeezing profitability. <\/p>\n\n\n\n

As a result of manufacturing costs exceeding the selling price, Nintendo is seeing a widening \u201cnegative margin\u201d in the Japanese market, Yasuda comments, with \u201cprofitability deteriorating further with every console sold.\u201d <\/p>\n\n\n\n

While Nintendo has yet to make any official statements on whether it will be raising the Switch 2\u2019s price, a recent Bloomberg report<\/a> claims that such plans are being contemplated for 2026 (via Polygon<\/a>). Analyst Hideki Yasuda certainly seems to hope this is the case, commenting that \u201coptimizing the hardware\u2019s price is essential.\u201d He believes Nintendo decided to price down the Switch 2 domestically due to an underlying industry belief that expensive consoles don\u2019t stand a chance in the domestic market. However, he criticizes this belief as outdated and debunked, expressing support for a revision in pricing or the release of custom design models to boost the Switch 2\u2019s profitability. <\/p>\n\n\n\n

Related: <\/strong>Why did Nintendo handle Switch 2 pre-orders so differently in Japan and the US? Japanese study suggests it\u2019s about differing views on fairness<\/strong><\/a><\/strong> <\/p>\n\n\n\n

Japan\u2019s console game market grew by 138.8% in 2025, driven by the Nintendo Switch 2<\/strong><\/a><\/strong> <\/p>\n","protected":false},"excerpt":{"rendered":"

Toyo Securities analyst Hideki Yasuda analyzes Nintendo’s recent financial results and the Switch 2’s “deteriorating profit margin.”<\/p>\n","protected":false},"author":55,"featured_media":51824,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_gspb_post_css":"","footnotes":""},"categories":[3],"tags":[261,17,33],"class_list":["post-62504","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-financial-news","tag-japan-related-news","tag-nintendo"],"blocksy_meta":[],"yoast_head":"\nThe\u00a0Switch 2\u2019s\u00a0cheaper, Japan-only model\u00a0may be\u00a0generating\u00a0loss\u00a0of $160 per unit\u00a0for Nintendo,\u00a0Japanese analyst\u00a0says\u00a0 - AUTOMATON WEST<\/title>\n<meta name=\"description\" content=\"Toyo Securities analyst Hideki Yasuda analyzes Nintendo's recent financial results and the Switch 2's "deteriorating profit margin."\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/automaton-media.com\/en\/news\/the-switch-2s-cheaper-japan-only-model-may-be-generating-loss-of-160-per-unit-for-nintendo-japanese-analyst-says\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The\u00a0Switch 2\u2019s\u00a0cheaper, Japan-only model\u00a0may be\u00a0generating\u00a0loss\u00a0of $160 per unit\u00a0for Nintendo,\u00a0Japanese analyst\u00a0says\u00a0 - 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