The Nintendo Switch 2 is being offered at a lower wholesale price to retail stores in Japan. This initiative is part of Nintendo’s strategy to ensure a successful launch of their new console in its home country.

As Japan is the birthplace of Nintendo and home to numerous other major gaming companies, this market holds significant importance. The original Switch achieved remarkable success, and Nintendo aims to replicate that with its successor.

• Japanese retailers are expected to earn a 5% margin on each Switch 2 sale, well above the standard 2% typically associated with console sales.
• The Japan-specific model of the Switch 2 is set to be priced at approximately $350, but it will be region-locked and support only Japanese language accounts.

Nintendo’s approach reflects its commitment to creating favorable conditions for the Switch 2’s release in Japan, a market where their consoles have thrived in the past. Video game consoles generally yield low profit margins, yet they establish a substantial install base for future software and peripherals, enhancing their long-term profitability.