The pricing of the yet-to-be-released Nintendo Switch 2 (NS2) has sparked heated debates. Initially, its international version’s $450 price tag drew fierce criticism from gamers. Then, after the U.S. announced tariff hikes on certain imported goods, Nintendo delayed opening pre-orders in the U.S. and Canada, causing secondary market prices to skyrocket to $600 or higher.
However, these fluctuations hardly concern Japanese gamers, as the NS2 is essentially being “sold at a loss” domestically. The Japanese version is priced at 44,980 yen. While not exactly low by Nintendo’s usual hardware pricing standards, this nearly 50,000 yen tag seems remarkably "consumer-friendly" compared to international prices.
What excites Japanese players even more is expert analysis suggesting the NS2’s production cost sits around $349. Hideki Yasuda, an analyst at Toyo Securities, even estimated in a Bloomberg interview that manufacturing costs could reach $400—meaning the Japanese version is likely sold at a loss.
Given that “Nintendo” and “fire sales” rarely appear in the same sentence, this apparent loss-leading strategy has been interpreted as a nod to “Japan’s pivotal role in gaming’s future” and “Nintendo fulfilling its duty as a national brand.” Some fans have even hailed it as a boost for “national pride.”
Critics, however, argue this is simply regional price discrimination, reflecting differences in purchasing power. The lower Japanese price, they claim, signals weakening domestic buying power. Even if the Japanese version loses money, Nintendo could recoup losses via overseas sales and software/merchandise revenue.
Others compare it to Sony’s classic playbook: selling hardware at a loss initially to build a user base, then profiting from ecosystems—a common console business model.
Additionally, splitting prices by language could help curb scalping, a major issue during the original Switch’s launch. Currently, most NS2 units are produced in China, with about a third from Vietnam. U.S. customs records reviewed by Bloomberg show minimal Vietnamese shipments until 2024 when nearly all Vietnam-made units were diverted to the U.S. in the first two months.
Data from assembler Hosiden Corp. reveals February shipments from Vietnam to the U.S. exceeded the previous six months combined, suggesting Nintendo has stockpiled millions of NS2 units stateside ahead of its June launch.
This strategy signals Nintendo’s attempt to flood the market early, squeezing scalpers’ opportunities. If Japanese units are scalped while multilingual editions remain abundant, price inflation could be mitigated.
Still, whether Nintendo’s “prioritize Japan, profit overseas” approach will work remains uncertain—scalpers, after all, are notoriously resourceful when profits beckon.
