Factory door prices are no where near the level stated on this thread. People seem so out of touch with reality and have been looking at too many of those sites that use retail prices to gauge the cost of manufacturing goods. However what Nintendo has is a large bill for research and development of the Nintendo Switch. Let's say 400 million dollars (I don't know the true value) and they have to start clawing that back before they even start to make a profit. Let's say the Switch costs $90-120 to manufacture a boxed unit. You have to add on top some sort of amount for R&D. For the first 2 million consoles you add $50 per unit you have already made back a quarter of your R&D costs bringing the cost to $170 then allowing for transportation, import duties, Nintendo profit, wholesaler profit and retailer profit you end up at $300. Within in that also is allowance for marketing costs, faulty units etc, other costs in bringing the product to market.

As time goes by and R&D costs have diminished, production costs have slightly reduced and one off costs have reduced (like higher initial marketing) you either enjoy more profit or if the hardware isn't selling as well you use those reductions to reduce the price to the consumer.

I suspect Nintendo are milking early adopters to pay for a big chunk of R&D costs and later pricing will be a lot more reasonable. I don't see it sustainable at current pricing.

There is nothing of great value in the Switch I'm sure, certainly not the 720p display or the nvidia chipset. When it comes to the controllers Nintendo normally use established low cost components in new and innovative ways. I don't know how the HD feedback works but I'm sure when we get the teardown it will be based on fairly low cost components. Certainly NFC reading chips and infra red cameras are incredibly cheap so little cost there.

I would argue that people who buy the Switch at its launch price are the minority of all LT Switch buyers. Hence, the majority thinks the price does not match the value right now.

You say gaming forum users are the minority and then base the counter argument on a different minority group, early adopters.

Yes.

I needed to end this quickly so I can get back to work.

You know I don't like making threads. I just wait until someone puts fruitless effort into a thread that is exactly the opposite of my opinion so I can go in and make everyone miserable.

Also it sounds like a reaction thread made by a Nintendo fanboy to paint everyone as a hypocrite while making a fool out of himself.

It needs to be carefully manipulated though. You don't want to get the wrong bad reputation. Give the fans what they want and solidify the hater's wrong assumptions about me at the same time.

I'd create a lot more threads if the mods hadn't implemented the "no fun"-rule.

If I've learned anything in this life then the chance of something being good being inversely related to the number of its fans. At least that's true for most things I'm a fan of.

My fans are the elite who obviously possess superior taste.

Nintendo made an unnecessary remark on this subject. They told during the reveal event that it won't be sold at a loss and that there is room for price cuts. Telling something like that to you customers was more than stupid. Those people will claim, that the Switch is too expensive.
Also, not selling it at a lower price could be problematic in creating a large userbase as fast as possible. But, so far, the pre-orders look promising and I guess we have to see how this year will be.

Bit odd comparing the price of a Switch vs a Samsung Galaxy S7.

I just had a check, and here in the UK a Nintendo Switch will set me back £279

A Samsung Galaxy S7 (32GB) will set me back £569. That's just over twice as much, and has no physical controls for games.

It is a bad thing that Nintendo is not able to produce the extremely weak and outdated hardware at a much lower cost. If they could produce it for 120$, selling it for 200$ would be within reach, provided that both Nintendo and the retailer share the 80$ profit. At 300$ it cannot compete with PS4 at all. Early adopters will get ripped off and then Nintendo will be forced to reduce the price at E3 because nobody is going to buy the system.

To me that's just greed. It's not like most people will buy the switch and then no game after that. They can easily sell it at a loss at a great price and get a lot of people (not just the hardcore fans) to buy it and then make a lot of money from software sales. Seems like that's not enough for Ninty.

They tried that with 3ds and the market rejected it until they decided to do an aggressive price cut a few months after it launched. I suspect the same thing will happen with Switch.