Japanese teardown firm, Fomalhaut has put the Nintendo Switch in their researching sights and carried out a teardown of the device. While the console sells for $299, that isn’t the price that Nintendo pays to build each one. Historically, Nintendo attempts to sell their consoles at a profit with the Wii U being sold at a loss. Sony and Microsoft, on the other hand, tend to sell at a loss at launch and make the money back later.
So if it costs $299 to buy a Nintendo Switch, how much is Nintendo paying? Apparently, it is about $257 per console. That is a tidy profit of about $42 per machine. It is expected that Nintendo will be able to sell 30 million units by the end of 2018 after it outsold the PlayStation 4 in Japan reaching over 500,000 units sold in its first month.
The Nintendo Switch is on sale now although finding stock can prove difficult as Nintendo struggles to keep up with demand.