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zorg1000 said:
thismeintiel said:

I would't assume that.  Nintendo doesn't seem to be the best at negotiating prices for parts.  I mean, the Wii U was be built at a lose when it was selling for $299-$349, and that used very outdated tech.  And Nvidia has been notorious for being tough to work with.  It's part of the reason why MS left them and the OG Xbox, as they didn't want to lower the prices on the Xbox chips. 

I'm still definitely guessing Nintendo could be selling this at $249 and either break even or take a slight loss, but I don't think they are making tons of money off the HW.  Hopefully, though, if sales do slide, they will take a

It was heavily rumored last year that Nintendo got a really good deal on the chips for Switch. Apparently Nvidia was desperate to get a major partner for their Tegra line.

Also using outdated tech can actually make things more expensive since they aren't being mass produced anymore, that along with the tech inside the gamepad made Wii U expensive to produce.

While I agree old tech can end up costing you a little more, you still have to account that the Wii U was the follow up to the hugely successful Wii.  Nintendo was on top of the market at that point and should have easily been able to convince manufacturers that their next console would be just as big of a hit, and therefore could take less of a profit on their parts to help lower the price and push sales even further.  Even if the tech was outdated, if the Wii U had launched for $250 and been just as big of a hit as the Wii, the parts would be mass produced to keep up with demand.

And I guess we'll have to wait til Nintendo's financials are released to see if the rumor is true.