Hardware Switch costs roughly $257 to manufacture

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Nazosan

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I have to say that I think they're really making their real profits on the extra accessories. For one thing, a lot of people likely buy the power plug so they can have one dedicated to the dock and one for when it's undocked. The MSRP on the official plug is currently $30 (ok, 29.99, whatever) whereas an equivalent third party power adapter would be about $10-14 at the outset (assuming equal build quality. I realize there are cheaper options, but they are of a lower quality.) The Joycons themselves sell for $50 each ($100 if you needed both) and an equivalently capable Bluetooth controller would be around $25 at the very outset. There's even a separate charging dock for the Joycons at $30 (and this thing is roughly equivalent to basically a phone dock at $10 as far as all that is necessary to make it. The Joycons use a lot less power to charge than the Switch does...) Not to mention all the third party accessories that still pay a license to be legal. (Though there are a bunch of Chinese companies that jumped in on the bandwagon selling on Amazon and the like who likely didn't pay the licenses, every accessory you see in the retaillers like those rubber grips for the Joycons did pay.) That much is just pure profit margin and nothing else for Nintendo since the cost of production goes to the third party manufacturers with those.

But here's where it really rakes in: The Pro Controller. $70 for the equivalent of a $30 or so controller. And how many people who bought the Switch rushed to grab a Pro Controller right away? Maybe even two if they can. After all, they likely want to be able to play multiplayer with them. So many of these are selling that these are as hard to get as the Switch and if you look on Amazon it's selling for $94 right now thanks to the scalpers taking advantage of the fact that Nintendo can't keep supply up to meet the current demand. Any time a retailler gets the Pro Controller in, it seems to disappear pretty quickly despite that ridiculous price tag. (And I couldn't help but to notice that you can can buy the Wii-U Pro Controller -- which is practically the same thing as far as what actually goes into it just minus one button -- for $50 MSRP and that's after the significant markup... Curiously enough the black one seems to be $40 everywhere actually. No clue why it's cheaper than the white one, but again, this is after a significant profit margin is added...) That is a really incredible markup for the hardware going into this thing.

If they had to get a patent for exfat, they would have used something like XFS like Samsung does.
The Switch does use exFAT. The reason they didn't go with some other filesystem is because they need something that will "just work" for ordinary people. Filesystems that won't work on a typical user's devices won't work. Sure, some of us can fire up Linux or whatever and access a huge variety of filesystems, but for your typical person -- aka Nintendo's main audience -- it needs to pop into a typical Windows or Mac OSX system and "just work."

And yes, they had to pay to use it. Otherwise they'd be looking at a very big lawsuit. However, this is what you call a "fixed cost." That is they pay some gigantic amount to license it for use with this system and that's a one time thing (or at worst something they have to renew from time to time perhaps.) It costs a lot no doubt, but the cost is an overhead cost and gets to be spread across everything they sell. If you look at how it would affect the cost of each individual system it likely ends up in the cents range. If that much... (Upon a quick google search I'm seeing numbers like $300,000, which is absolutely nothing on the scale of a device that is expecting to sell in the millions.)
 
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gundamu

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Well I'm glad you think you know more than the people who are paid to know these things.

doesn't mean they are right, unless you can prove that the price they provided is indeed what it costs nintendo to make each switch. system is overpriced for what it offers, strong chance xbox1/ps4 are getting price drops this year.

nintendo will have no choice to drop the price.
 

Xzi

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nintendo will have no choice to drop the price.
Lol if it keeps selling at the current rate then the obvious choice will be leaving the price where it's at. It'd be different if Nintendo had devalued their own console as Sony/MS have done with Pro and Scorpio.
 
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Kioku

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doesn't mean they are right, unless you can prove that the price they provided is indeed what it costs nintendo to make each switch. system is overpriced for what it offers, strong chance xbox1/ps4 are getting price drops this year.

nintendo will have no choice to drop the price.
All you've got is speculation. These guys actually give us numbers. Hm...
 

Futurdreamz

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Lol if it keeps selling at the current rate then the obvious choice will be leaving the price where it's at. It'd be different if Nintendo had devalued their own console as Sony/MS have done with Pro and Scorpio.
Yep. H8r logic: "The Switch has overwhelming demand and we're having difficulty keeping it in stock. How about they slash prices to increase demand!"

It could cost $50 to make a Switch, and it still wouldn't matter.
 

flame1234

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strong chance xbox1/ps4 are getting price drops this year.
PS4 slim has been available for $200 before.
Xbox One has been available for $180 before and Xbox One S has been available for $240 before.

You're not going to see prices much lower than those. Do note that they're less than Switch already. Note that those prices include a game; Switch includes no game.
A lower price will move Switches but Nintendo is patient. I don't think you will see it drop in price for the holidays.
 
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gundamu

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Lol if it keeps selling at the current rate then the obvious choice will be leaving the price where it's at. It'd be different if Nintendo had devalued their own console as Sony/MS have done with Pro and Scorpio.

launch sales mean nothing

reminder wii-eww sold more in the same time frame and failed miserably
 

gundamu

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You're not wrong, but that also does nothing for the argument that it may not sell

no1 is saying it's not gonna sell, it's way 2 early to rely on launch month numbers.

nintendo needs to get serious if they wanna get back the lost market share. i expect a zelda bundle in the summer/holidays. new pokemon(plzz) and monster hunter would instantly boost sales by a 200-400%.

i hope i can trust reggie on this years e3.

let's get real here. lots of companies are using nice ips screens these days.

microsoft has destroyed any ips it had, 343 can't make good halo games. gears of war 4 was meh.

sony has good ips but are no where near the level of nintendo ips.
 
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Kioku

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no1 is saying it's not gonna sell, it's way 2 early to rely on launch month numbers.

nintendo needs to get serious if they wanna get back the lost market share. i expect a zelda bundle in the summer/holidays. new pokemon(plzz) and monster hunter would instantly boost sales by a 200-400%.

i hope i can trust reggie on this years e3.



microsoft has destroyed any ips it had, 343 can't make good halo games. gears of war 4 was meh.

sony has good ips but are no where near the level of nintendo ips.
This is true. It's too early.. But given the circumstances, I'm surprised the Switch opened like it did. It gives me hope for the long run. I also hope they don't mess this up.
 

Gadd

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no1 is saying it's not gonna sell, it's way 2 early to rely on launch month numbers.

nintendo needs to get serious if they wanna get back the lost market share. i expect a zelda bundle in the summer/holidays. new pokemon(plzz) and monster hunter would instantly boost sales by a 200-400%.

i hope i can trust reggie on this years e3.



microsoft has destroyed any ips it had, 343 can't make good halo games. gears of war 4 was meh.

sony has good ips but are no where near the level of nintendo ips.

wii u didn't even use an ips screen. I think my 3ds xl has one ips out of the two, but a lot of 3ds systems didn't have any ips at all I think..
 

TotalInsanity4

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microsoft has destroyed any ips it had, 343 can't make good halo games. gears of war 4 was meh.

sony has good ips but are no where near the level of nintendo ips.
IPS, not IPs (if I'm understanding the post correctly). It's a display technology that allows for better blacks and a wider viewing angle
 

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