Console makers tend to sell their systems at a loss, writing it off as an investment in the consumer. If a gamer buys a system from them, theyâ€™ll buy five, ten, twenty games at a much higher profit margin in the future. Nintendo, on the other hand, takes a more conservative approach. They sell their systems for a profit, however small. The only exception to that was the Nintendo Wii U, which the Switch is replacing after just three and half years. Everything from the look of the system down to its price seems to suggest Nintendo is keen to avoid repeating history.
The Nintendo Switch launches on March 3, and the company is already looking to increase production on the system. According toÂ Bloomberg, the company has â€œhuge expectations based on how Switch reservations are doing,â€ including the Japanese audience having already pre-ordered 80% of the nationâ€™s allotment of Switch consoles.
Article source: https://www.technobuffalo.com/2017/01/31/nintendo-switch-sold-at-profit/