The $257 build cost for Switch was reported back when it launched in 2017:

https://www.pcmag.com/news/nintendo-switch-build-cost-estimated-to-be-257

I mean, I wouldn't think it would still cost that much to make.

Yes that was in reference to the Switch V1. And supposedly rumored to be ~$267 for the OLED but Nintendo refuted that.

Yes that is the April 2017 figure, no other website can given a recent manufacturing cost so I assume it still is near $257. They gained about $30 per Switch, and ~$80 per OLED, and had to be aggressive when finding people to produce material for the Lite.

My prediction for the holiday was 400k higher than the shipped total. So I feel pretty happy about that. By end of March Switch will have shipped 142.66M.

Well, during 2021 the price to manufacture actually increased, due to chip shortages, etc. So it may still be that close. But yes generally during the life of a console the manufacturing cost decreases.

There are obvious design differences based on format the game was targeting when it was designed. From screen space usage and UI elements to game structure sometimes. It's even more apparent if you take a look at Switch ports that come from handhelds and compare them to ones that come from consoles.

Look at how something like Rune Factory 3 or 4 uses screen space and their UI elements and compare that to Bayonetta 1.

Of course that doesn't apply to everything or that you can't play it in any way you want. Especially original Switch games as they tend take both into account since its a hybrid.

What an excuse. Vita was a failute, any version of it would sell even less. Around 20% of switch user's play exclusively in docked mode. Those people would have loved paying $100 less for the same product. What nnitendo should do for the switch 2 is both a home and a REAL lite version (not the fake lite they made for switch).

For the switch, a real lite for $199, dropping the prices of the other models to $249 and $299, then starting the nintendo selects program for their 2017-2019 tittles would already let them sail to 160-170m sales. 

What would the real lite be?

Probably something pocketable like handhelds used to be. Vita and 3DS were barely pocketable but would fit in some pockets. Switch Lite doesn't fit in your pockets unless you have disproportionately big pockets or have a big waistline with big pockets. 

However, in response to one of the quotes, I don't see how a pocketable Switch Lite could only be $199. Even in 2024 and beyond, it takes a good amount of engineering to have Switch specs in the size of a smartphone with buttons. 

A dockable one. Just make a smaller dock and use a cable for docking it, so the system can still be used as a controller.

Honestly, that sounds like a Switch, with just a smaller dock.

I was thinking that a real lite would be more handheld than hybrid, like the Switch Lite.
Here's what I think a real lite would be:
4.2" screen
HD
Non-dockable
Rumble feature
4-6 hour battery
Durable material, and feels durable (unlike the Switch Lite)
Fast reliable charging (Like 30 mins from 0%-100%)
Foldable and retractable cover for the screen as protection
More comfortable grip for ages 5-16 (maybe an optional adult grip version?)
$149.99

Essentially a DS-like Switch. Though I don't know how possible it would be to make all that fit. I can see this selling over 5-12M units.

This would probably need circle pads 3DS style instead of analog sticks to make sure the cover would fit.

True. A slim and sleeker looking Switch thats about the size of a DSiXL. or a 2DS.