How cheap will Nintendo be able to make the Nintendo Switch?

[KBG29]

There are a lot of factors to how low it can go, but if we just stick to the curent form factor only, $129.99 is probably the lowest it can go.

The current Switch uses a 20nm Tegra X1, so they can make significant cost reductions at any time on the SOC. If they bring out a base Switch featuring a 7nm SOC, they could completely eliminate the need for a fan, making it a much simpler build. They should easily be able to make a $199.99 Switch on 7nm next year, with a pretty healthy profit margin. I actually think they could cut to $149.99 down the road on the same 7nm SOC while maintaing a small profit margin.

After that it becomes muddy. How long will Switch be viable? By 2020, you could be looking at most AAA 3rd party games moving to PS5/XB? as the lead platforms. Maybe Sony and Microsoft both offer a Mobile/Portable in their ecosystem at somewhere between PS4 and PS4 Pro levels. I am very sure we will have a Switch Pro that is also in that ball park. Will a base level Switch have much of a place in the market at this point? Only time will tell. If I had to guess, the base Switch specs will just be to low for serious development by this point. I think Nintendo will give it one last price drop to $129.99, and it will mostly be for Nintendo titles, and indies.