- Nintendo is selling the Japan-only variant of the Switch 2 at around a $160 loss.
- The manufacturing cost is higher than the selling cost, leading to negative revenue.
- The company has a huge customer base in Japan, and seems to be fine with the loss.
The Nintendo Switch 2 was released back in June 2025 and was an instant hit, and by November 2025, it had already sold over 10 million units. Its biggest sales region is Japan, and the company wants its dominance to stay intact.
A new report suggests that Nintendo is selling the Switch 2 at around a $160 loss in Japan. The region-locked version is the more popular choice among the Japanese audience and is much cheaper than the international variant.
Why it matters: Consoles are generally sold at somewhat of a loss initially, but Nintendo hasn’t raised the prices despite memory prices skyrocketing; it is okay with taking a loss rather than compromising on sales.
According to Toyo Securities analyst Hideki Yasuda, the more affordable, Japanese SKU is being sold at a loss of around 25,000 yen or $160. The company’s revenue significantly increased, but it is lagging behind sales.
So, while it recorded a massive 99.3% year-on-year revenue growth, the Switch 2 (Japanese) sales were higher than the generated revenue. This is because those consoles are being sold at a loss by Nintendo.
As per his estimates, Switch 2 takes about $400 to manufacture. This includes $300 worth of semiconductors and $80 worth of the rest of the parts. The retail price is less than that, which puts Nintendo in negative profitability.
He notes that the profitability is deteriorating with every console sale. Even then, Nintendo has suggested that the prices will remain stable despite the memory prices, but it remains to be seen what the company eventually does.
What are your thoughts on the Switch 2 Japanese variant being sold at a $160 loss? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.
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News Reporter
Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.
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