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Nintendo Switch 2 Sales in Japan are “Better-Than-Projected,” and It’s Hurting the Switch 2’s Profitability

A hand is placing a red Joy-Con controller onto the Nintendo Switch console, which has a logo reading 'D2 Nintendo Switch'

It might be difficult to imagine that increased sales of Nintendo’s latest hybrid console, the Nintendo Switch 2, in any region, let alone its home base of Japan, would actually hurt the console’s profitability. But that’s exactly what’s happening, according to Nintendo president Shuntaro Furukawa. In the company’s official translation of its Q&A section from its third-quarter financial report, Furukawa confirmed that the “better-than-projected” sales of the Nintendo Switch 2 in Japan will negatively impact the Switch 2’s operating and gross profit. How is that the case? Because the parts Nintendo uses to manufacture the Nintendo Switch 2 are purchased […]

Read full article at https://wccftech.com/nintendo-switch-2-profitability-hurt-by-better-than-projected-switch-2-japan-sales/