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Forums - Nintendo Discussion - Switch costs ~$257 to build and 30MM sold through 2018

Yerm said:
Normchacho said:
So...How much of that goes into making it a hybrid? Either the dock, removable controllers, grips, ect. Or screen, battery, ect. Depending on how you look at it.

Im actually pretty sure making it a hybrid was the easy part. 

The dock - its a huge chunk of plastic with a few inputs. pocket change to make those.

removable controllers - just a fancy plastic design, not really more expensive that having a stand alone controller, which are already dirt cheap to produce. they may change $60 for a new Xbox xontroller but truth is they manufacture those for like $10.

grips - basically just plastic with a wrist strap. not very expensive.

screen - probably the biggest culprit actually. think of every screen as a TV. with that in mind, they basically strapped a mini HDTV to a home console. 

Those controllers have to be more expensive to produce than that. Otherwise 3rd party controllers wouldn't be so crappy. But its safe to assume a large profit is often made selling controllers. I don't think Switch will benefit from controller sales like most consoles.

The screen cheaper than most would think. The screen used on portable devices isn't the same as most HDTVs. Bear in there are good tablets on the market for a measly $60 with 720p screens. My phone has 5.7" screen and it was only $80, not much smaller than the Switch screen.



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Glad to hear, that means price cuts are feasible without being a financial burden.

With a game I want, I would pay $250.



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zorg1000 said:
30 million by the end of 2018 would be faster than PS4 which passed 30 million in November 2015 or 2 full years after launch.

PS4 didn't have a worldwide launch. 25 Nov 2015 is less than 2 years for PAL and JP.



Keep in mind it's a guestimate.
A company like Nintendo can get away with different costings due to buying in bulk, having deals with manufacturers and that sort of thing.

There is a degree of error.



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Lawlight said:
zorg1000 said:
30 million by the end of 2018 would be faster than PS4 which passed 30 million in November 2015 or 2 full years after launch.

PS4 didn't have a worldwide launch. 25 Nov 2015 is less than 2 years for PAL and JP.

lol you're really going to argue over 4 days for PAL regions? Its over 2 years for America (by 10 days) so lets just split the difference and say 2 years for America/PAL regions, sound fair?

As for Japan, ya it launched 3 months later but adding those extra 3 months only adds up another 400k so the point still stands, if Switch hits 30 million by the end of 2018 it would do so faster than PS4 did.



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cycycychris said:
TorterraBoy said:
makin that $43 dollar profit, I think it can make more than 30 million by 2018's end if nintendo stocks the damn system

There not making $43 if this build price is true. Retails don't sell Nintendo hardware for free. they take at least $30-40 in my opinion. there still shipping and advertising. Nintendo say there making a profit, but its not much.

Lol, if they are making a dollar on the console then they are making a killing. I remember a lot of consoles sell for a loss at launch. Making any money, is great. 

https://www.gamespot.com/articles/ps3-manufacturing-costs-down-around-70/1100-6214569/

 $840.35 to make at its November 2006 launch, when it cost $599.

 

So lets say Nintendo makes 0.10 off every Switch. They have made a profit around $200,000 and will make hundreds of millions of one game alone. Now look at PS3 and lets say that sold 2 million as well. They made -241.35 per console (not counting retailers and packaging, or maybe it is..Either way) that will be a Net loss of 482+ Million per console.

What I'm coming to is that Games keep consoles alive, if any console can make money at launch the company is golden especially if they are selling in the millions.



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Then they really aren't making much of a profit

Still hope they have a pricecut though x:



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Profit at launch leaves more room for price cuts later on as manufacturing prices inevitably drop. This is good news for us and Nintendo. After packaging and shipping they're probably only making a few dollars per console. More than what most consoles do at launch. Good on Nintendo.



TorterraBoy said:
makin that $43 dollar profit, I think it can make more than 30 million by 2018's end if nintendo stocks the damn system

That's components cost. You have to add R & D cost, advertising cost etc. It is likely that it is sold at loss.



I find it strange that some people are saying they hope for a price cut soon (this year). It came out a month ago!!!! It is sold out everywhere. A price cut this year would be the number one stupidest thing Nintendo could do. A price cut will come when sales start to become lackluster. I'd guess price cut to $250 in 2019, maaaaaybe for holidays 2018 but I suspect the Switch will sell very well so I very much doubt they'll need to sales boost from a price cut until 2019. I also don't get the people saying it is too expensive, which are the same people, I think $300 is a perfect price for it, and judging by this analysis of the cost to make the Switch it would seem it is a perfect price from a cost perspective for Nintendo as well. It is a very powerful handheld system, that doubles as a moderately powerful console, with touch screen, with controllers that can be formed to be 1 or 2 build in controllers. Welllll worth $300.

They are marketing it as a console right now because they are looking to pick up console sales for it. It is a cheap new console right now but is expensive for a handheld. In a couple years once they get the price under $250 they'll probably start to market it more as a handheld to get the tens of millions of 3DS users that haven't yet switched over to start to switch over. Anyways, the cost makes sense given that it is a super powered handheld with two motion controllers, a touch screen, and a dock to make it a console.