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The_Yoda said:

The statement "sadly Nintendo never sells at a loss" is not entirely accurate.  I believe it was the 32GB model of the WiiU that initially sold at a very slight loss.  If memory also serves though 1 game purchase with the system put them back to profitable.  I cannot remember if that had to be a first party game or not.  That said, while it does set president, I find PAO's idea unlikely.  It would be smart of them in my opinion but ... I share your skepticism. 

Not to mention the extremely dire 2003 situation that forced them to sell GameCubes for $99. The losses per unit must have been so large that it cost over half of their net profits in the following quarters.

But I don't see Switches being sold at a loss unless they're piling up in inventory like it happened to the GC.