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Tober on 17 February 2024
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Shtinamin_ said:
Tober said:

About possible pricedrops for the Switch. We don't really know how much it cost for Nintendo to make a Switch. We only know that the profit margin on the Switch Lite is the highest and the OLED has the lowest profit margin. This is margin (%) and does not really say anything about profit in $.

Would Nintendo be willing to pricedrop the Switch to such extent that it would not make any profit anymore or even a loss at this stage of the Switch' life? I'm doubtful.

Offering a console at a loss is usually used to capture market share so to sell more games. But the Switch is so widespread already.

I'd love to see a pricedrop simply to see how far the Switch can go and become the #1 selling console, but not sure if Nintendo would care about that.

We know how much a Switch costs to make in 2017. And from there we can assume that margin has either grown or stayed stagnate.

After the release of their successor a price drop makes the most sense. Until then the Switch won't get a price drop.

But let's say that they give the Switch family a price drop before the successor, I would speculate the prices to be $169.99, $269.99, and $329.99 for the Lite, Switch, and OLED respectively.

Honestly I think that after the successor drops it's likely that some gen1 Switch models will go away.

There are already 7 standard SKU's (Stock keeping units) of the Switch family:

- Switch Lite 3 different colors.

- Switch 2 different colors

- Switch Oled 2 different colors.

I don't think they keep them all around if the Switch2 comes ( with possibly 2 color variations also). It's logistically not great for retailers.

Possibly they reduce the number of color variations and keep the 3 models. Or they drop 1 model altogether. I assume they stick with the Switch Lite, so then the OG or OLED would need to go. With the Switch2 rumoured to have a LCD screen offered for $400, I could see them drop the OLED. In that way there would still be a natural price difference of $100 - $200 with the Switch2.

Not saying I'm hoping for this, I prefer a pricedrop.