You get what you pay for
Takashi Mochizuki from the Wall Street Journal mentions through his Twitter account that Japanese teardown company Fomalhaut has taken apart the Nintendo Switch console and estimates the price of all components to be close to $257, which is actually not to far away from the $299 suggested price at retail. For comparison’s sake, the Wii U was estimated at $228 for the console and Gamepad.
This would illustrate how much Nintendo is investing in the system, and although they are putting some serious money into it, they are also making a profit for every console sold. This also means that a possible price drop by the Holidays is not expected as the production cost won’t be that much lower.
Aside from the teardown, the firm also states that they expect around 30 million Nintendo Switch units to be sold by the end of 2018, making it the second best selling Nintendo console in history, but short of the 35 million Wii sold in its first 21 months in the market.
Of course, predicting and actually meeting those predictions are two completely separate things, but so far the success of the Nintendo Switch has sold better than anticipated.
Source: Takashi Mochizuki Twitter
Source: Fomalhaut Teardown Firm
Source: Destructoid (Wii U cost)