Japanese Teardown Firm Estimates The Manufacturing Cost Of The Nintendo Switch To Be $257

Nintendo openly explained they would not be selling the Nintendo Switch (NX back then) at a loss prior to launch and now Japanese teardown firm, Fomalhaut, have estimated that the Switch has a manufacturing cost of $257. The news comes from a tweet by Japanese Wall Street Journalist, Takashi Mochizuki. This figure isn’t too far off the RRP for the Nintendo Switch, so, taking into account the variants of price points set by sellers themselves, Nintendo seems to of stuck by their word.

Fomalhaut also expect the Nintendo Switch to sell well with estimates pointing towards 30 million units being shifted by the end of 2018.

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56 Comments Add yours

  1. I expected more due to how well detailed the Joy-Cons are and how “heavy in technology” they are. This surprised me!

    Liked by 1 person

    1. myownfriend says:

      The JoyCons don’t have any real exotic technology in them. They’re just buttons, a gyroscope, accelerometer, Bluetooth controller and antennae and a linear actuator for the rumble motor.

      Liked by 1 person

      1. paidenthusiast says:

        You’ve been drinking Haterade or what?

        Liked by 2 people

        1. myownfriend says:

          I know I’ve been very vocal about how much I don’t like the Switch’s concept or execution but I didn’t say a single hateful thing in that whole post.

          None of those things that I mentioned or the battery that powers them are exotic or specially created for the JoyCons. The buttons are still just controlled with contacts on a PCB and accelerometers and gyroscopes have been common in devices for years now and are very low cost. HD Rumble is both a hardware and software thing that’s made possible by using a linear actuator instead of the more common rotational actuator so the software can now do shorter, more granular vibrations that better allow developers to simulate certain sensations. Think of on-screen keyboard on the Wii, when you hovered over a letter, it vibrated to try to give you some sense of touch said keys. The Wii used a rotational actuator though so they feedback was too bold and too long. A linear actuator would have allowed them to give more subtle feedback for hovering over the keys and even simulate a tap when pressing said keys.

          Liked by 2 people

        2. myownfriend says:

          Furthermore, hardware doesn’t have to exotic to do cool things. Since the days of Gunpei Yokoi, Nintendo’s philosophy has been “Lateral Thinking of Withered Technology” so it shouldn’t be surprising that a new feature of their controllers is using non-exotic technology. The only time that they’ve really used particularly specialized way was with some of the their older CPUs and GPUs. Even the shutter screens in the Virtual Boy, which were a very unconventional way to make screens, were simply mirrors on motors reflecting LED arrays.

          Liked by 2 people

          1. So obviously not drinking Haterade then. :)

            Like

  2. Nintendo seems to HAVE stuck by their word? :p Seems like it to me too. Seems reasonable. Add in the cut for retailers and a healthy tax from High Command and you come up with retail price. Not too bad.

    Liked by 10 people

    1. Yeah, so really the price is good for tech that costs this much.
      Honestly, I believe the Wii U was cheaper but that was due to the PowerPC chip but the Gamepad was the only expensive part.

      Like

    2. RidleySlayer says:

      Lol beat me to it.

      Liked by 1 person

    3. NintenMau5 says:

      Don’t even get me started about the price I had to pay here in miserable UK.

      Liked by 3 people

      1. Nintendo First Order Commander Quadraxis says:

        ||It’s for the greater scheme of things that will happen…||

        Liked by 1 person

      2. I do feel for you. Sometimes video game pricing completely confounds me in places like the U.K., Australia, or even Canada. It’s like they have it out for Her Majesty or something… Like you have it out for The Queen’s English. ;)

        Liked by 1 person

        1. NintenMau5 says:

          She’s a pretty awesome lady to be fair but her love for Nintendo, I’d imagine, is pretty non-existent. Maybe that needs to change and we’ll see cheaper pricing. *writes letter to Buckingham Palace*

          Liked by 3 people

          1. While you’re at it, She has a few colonies overseas that would welcome back her rule, given some… less than prudent election choices of late… orange orangutan… :p

            Like

            1. King Kalas X3 {Greatness Awaits at Sony PlayStation 4! Please, Nintendo! Blow me off of the fence at E3 onto your side so I can say the same for Switch, too!} says:

              Hey now. Trump has been far more level headed since winning the election. Least I haven’t heard him going off of long angry tirades as of late. At worst, we can just impeach his ass. At best, he could be the best president we’ve had since Clinton. Maybe…. Hopefully…… D:

              Like

        2. cronotose says:

          “Sometimes video game pricing completely confounds me in places like the U.K., Australia, or even Canada. ”

          It’s the cost of socialism. Doing business is more expensive, so the cost to the end consumer is higher.

          Like

      3. At Wal-Mart, the price was unbelievable. its at 380$, not 300$. the price should be the same in all stores. Can you tell me when are they shipping out the Nintendo Switch consoles? I haven’t gotten mine.

        Like

        1. I don’t know if anyone knows for sure. The last weapons shipment from High Command was… last week to GameStop, I think? I think it’s just luck of the draw right now.

          Like

          1. Wait?. Last week at GameStop?. a few weeks ago, Nintendo did say they were shipping out more Nintendo Switch consoles this week. That’s what they said to us. so, I haven’t gotten mine yet.

            Like

          2. Nintendo First Order Commander Quadraxis says:

            ||The third wave is at its final stages and will be ready to ship in the near future as we speak…||

            Liked by 2 people

            1. Trust the Commander on this one, Sonic. It outranks me. :p

              Like

      4. I got my Switch, carrying messenger bag, neon joy cons, Bomberman R and a screen protector for about £18 all together.

        pays to save up on points XD

        Like

    4. Nintendo First Order Commander Quadraxis says:

      ||The First Order does not tolerate big failures…||

      Liked by 3 people

  3. myownfriend says:

    Still waiting for IHS’s BOM analysis to get the cost breakdown. Because this honestly seems higher than it should be. I wonder if the large screen in more expensive than I thought.

    Like

  4. mode7superfx says:

    Sell systems and lots of them but not for a loss…sounds reasonable to me.

    Reaganomics at its finest!

    Liked by 1 person

    1. Were you even alive in the Reagan administration? You’re thinking basic Capitalism. Reaganomics was much more complex and controversial.

      Like

      1. mode7superfx says:

        Lol it was a joke. I literally looked up the definition, knew it didn’t fit, and added it just because. 😁

        Like

        1. I was joking too… man, jokes in text suck! :p

          Like

          1. mode7superfx says:

            yes they do sometimes. No harm in trying lol

            Like

  5. Mike S says:

    Seems about right. The sales I can see as even right now at work we got a few in and they’re flying. Had 4 in the case yesterday and those went and there were 3 in the back that went up today and one is already gone.

    Liked by 1 person

    1. Thank goodness I went to the midnight launch. I haven’t seen a Switch in my area since.

      Liked by 3 people

      1. Mike S says:

        They’re all gone now.

        That was fast.

        Like

    2. I haven’t even got my system yet. When is Nintendo is going to ship out more of these consoles?

      Like

      1. Mike S says:

        I’m not in a position to know. I just saw them.

        Like

  6. Profit! Sweet sweet profit !

    Liked by 1 person

    1. Even if Nintendo decides to drop the price it will still make money and when the do decide the price drop it will probably be cheaper to make thevSwitch by then. Now they just need the software (and boy it’s coming)

      Like

      1. cloud8521 says:

        Not really…

        there is only room to drop the price if they want to lose money at the moment

        Retailers do take a pretty hefty cut.

        Like

        1. That’s why I said later on when the Switch costs less to make

          Like

    2. Looks like Nintendo is making a profit for Nintendo Switch system.

      Liked by 1 person

      1. cloud8521 says:

        ya a few cents if even a few dollars

        Liked by 1 person

  7. Agato says:

    I don’t trust it, it does seem a bit too high. I’s just manufacturing, they would take losses otherwise and they said they want to recover on development costs too.

    Liked by 2 people

    1. Nowhere Man says:

      These estimates usually don’t take into account mass production and bulk purchasing, if I’m not mistaken. They take the individual pieces of tech and estimate those costs, then add up the total. I’m sure manufacturing cost is a bit lower than that. In fact, I would say that’s closer to (but still higher than) the distribution price before going to wholesalers/retailers.

      Like

      1. Agato says:

        This should be plausible, except that they should gaining money even after retailer taken in account. Otherwise they would lose money per unit and they said the contrary.

        Like

  8. I expected more due to how well detailed the Joy-Cons are and how “heavy in technology” they are. This surprised me!

    Like

  9. nintynate says:

    Seems odd to me, i cant work in dollhairs lol but in quid… £257 to make yeah and they sell for £279? … £23 profit? Hmmm

    Like

    1. Don’t forget, retailers like Game in the U.K. And GameStop in the U.S. Take part of that profit too.

      Liked by 1 person

    2. RidleySlayer says:

      The conversion rate is £1 = $1.24. So it would be about £207 production cost.

      Like

  10. Umm guys the switch are out of stock at Walmart but I think the site glitch because the switch is price at $28.35

    Like

  11. The same guy how faked
    that quoute
    ( Investors “Hated” Nintendo Switch)

    Like

  12. I’m sure glad I got my Switch on launch day. I still haven’t seen any on store shelves even once since that day. It must be much harder for Nintendo to manufacture more Switches than it seems. Either that, or they’re just taking their sweet time (and completely avoiding restocking the NES Mini in the process). Nintendo is slower than a snail with restocking issues.

    Like

  13. I’m gonna be waiting for awhile for a price drop.
    Not because i won’t pay the price they charge but because i can’t.
    That’s just a bit too much for me.
    I had 250 saved up around launch… but then when i seen the price.. the money ended up going else where..

    Like

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