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- A new rumor has suggested that Nintendo is selling the Switch 2 for way less profit.
- Nintendo Prime, a content creator, has revealed that the company only makes $4 profit on each console sold.
- This isn’t surprising, given that in the console market, companies typically don’t make a profit from the hardware initially.
A detailed presentation on the Nintendo Switch 2 was held on April 2, 2025, revealing several key details. The fandom didn’t particularly like the price tag, especially given that the gaming giant had priced a game at $80.
However, it seems like Nintendo isn’t making that much profit from its latest handheld, even after pricing it at $450. As per a rumor the gaming giant is making only $4 on each unit sold, which is way too less, but this is how it works in the console market, so not that surprising.
Why it matters: For a long time, the gaming giants in the console market didn’t generate profits from the actual console. Instead, they made profits by selling video games for that specific console. However, the PlayStation 5 is now profitable as hardware production costs decrease over time.
A content creator, Nintendo Prime, recently stated on Twitter that Nintendo only makes $4 on every Switch 2 unit sold. So, the cost to make almost matches what the gaming giant is selling it for, which seems pretty fair.
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.
He further said in the comments: “(The $4 is the retail profit. Nintendo is selling at cost and make nothing).” This is not surprising, given that it is how a console business typically operates at the outset. Some even take a loss per console, so getting $4 profit may be better in this scenario.
Eventually, with time, the hardware will become less expensive to manufacture, and the handheld will be more profitable. That said, the gaming giant earns a hefty amount from the games, so it won’t have any problem with the lower profit from the handheld, at least for now.
This is merely a rumor from a content creator, so we recommend taking it with a large grain of salt.
What do you think about the possibility that the Switch 2 generates only $4 in profit for the company for every unit sold? Please share your thoughts with us in the comments section below or join the official Tech4Gamers forums for discussion.
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[News Editor]
Obaid is pursuing a Law degree while working as a content writer. He has worked as a gaming writer for over three years because of his passion for the medium and reporting the latest updates in the industry. Having played hundreds of games, Obaid finds himself coming back to Elden Ring, Cyberpunk 2077, and Red Dead Redemption 2, with these games being among his favorites. He has also been mentioned on highly regarded websites, such as Wccftech, Metro UK, PS Lifestyle, GamePressure, VGC, and Gamespot.
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