It's a bad thing the Switch isn't being sold at a loss?

[TheWPCTraveler]

Intrinsic said:

TheWPCTraveler said:

That is the "bill of parts." In other words, you ignored labour costs, shipping costs, and the cut that the retailer/distributor receives upon sale. You're also ignoring the massive amount of money it takes to perform R&D to create the device and properly market the damn thing (though that is not a cost that directly scales with the quantity of devices sold).

By the way, your S7 costs $500 on Amazon. And it released last year. I'd hazard a guess that a device of that caliber from Samsung would cost $300 by holiday 2018, but the Switch will also most likely have gone down in price by that point.

You also ignored that the Switch has a larger battery, a fan inside, and comes with a controller. It also comes with a(n overpriced) dock. (The Switch should've just come with a 6" 1080p screen just to take advantage of display manufacturers mass production, to scale prices down better, but that's just me).

So why does the Switch cost $299, again? Even with all that I said, I still don't see myself paying more than $250 for it, but I can see how it's priced that way.

No..... thats the same breakdown of costs used for things like the PS4 when it launched. The PS4 came in at $384 when it launched back in 2013.

And the bolded part..... you do realize what the key difference between smartphones and game devices are right? With one your business with them ends after purchase, with the other your business with them starts after purchase.

I don't know why people seem to think that peices of plastic (with a board, chip and sensors) controllers are expensive. They aren't, the PS4 controller, for all its motion sensing, trackpad, sticks, buttons lights, batteries...etc doesn't cost more than $16 to make.

Anyways, forget about all this.No point.....

I missed the point of the thread entirely, so I apologize. I thought of it the same way I thought NCL goes about, which is the opposite of what this thread is about.

That said, if Nintendo is serious with the whole "we have enough room to maneuver a price drop" business, then all things considered, the Switch tablet alone should cost below $140 to manufacture.
Assumptions: Dock+Joy-Cons = $40 (+$10, due to how retailers and distributors work), price cut is off JP price ($260 pre-tax) and is ~$40. Retailer cut is assumed to be at 20%.