As we’ve discussed before on this site, there are many things that game developers/publishers care about more than anything else. The vast majority of them prioritize making the most money over making something of quality, as we’ve seen in MANY titles over recent years. However, then you get someone who makes a game so great and beautiful that you wish that someone would follow their path. Nintendo has often been the “lone walker” of that path, and the Nintendo Switch 2 might follow that path in a more unique way. After all, despite the console being more expensive than its predecessor, the company isn’t making that much off of it.
This comes from the financial briefing that occurred yesterday, where Nintendo revealed numerous things about the OG Switch and the Switch 2. One of the things that President Shuntaro Furukawa noted was that the company hopes the Switch 2 will sell about 15 million units by the end of the fiscal year, which is March 31st, 2026. However, as some noted after that statement was made, when you look at the actual profit numbers that Nintendo hopes to get in that period, it’s far smaller than you would suspect.
As you can see above, the reason for this is that the Nintendo Switch 2 has a much lower profit margin than the OG Switch did. That might surprise many of you, because you’ve undoubtedly seen all manner of articles, YouTube videos, and comments on social media about how Nintendo needs to “lower the price” of their system and games because they’re “anti-consumer” and that they “just want to make a lot of money.”
Yet, as this proves, they’re actually making less than before, and that says quite a lot. Do recall that they announced the $450 price tag for the Switch 2 after the presentation in April, which was before the massive US tariff situation came into effect. Nintendo then paused US pre-orders so they could assess the situation and determine the best course of action going forward. In the end, the company decided NOT to increase the price of the consoles, keeping it at $450.
In contrast, Microsoft raised the prices of the Xbox Series X/S, systems that have been around since 2020, by $80-$100. So, you tell us who is “anti-consumer.”
It’s clear that Nintendo is fine with this “lower profit margin” and simply wants to give players access to the new console and its games without bankrupting them. A nice gesture indeed.
