Nintendo is reportedly offering Japanese retailers a significantly higher profit margin on its upcoming Nintendo Switch 2 console. While typical hardware sales offer around a 2% margin, the new console will provide approximately 5%, aiming to encourage greater support and availability during launch.
This move is part of a broader strategy to ensure a smooth rollout of the Switch 2, expected to launch on June 5, 2025. Nintendo has ambitious projections: 15 million units sold and 45 million software sales in the fiscal year, with an anticipated 13% increase in operating profit—reaching 320 billion yen (about $2.22 billion).
To combat scalping—an issue that plagued the original Switch—Nintendo is taking several aggressive steps in Japan:
- Collaborating with second-hand marketplaces like Mercari to ban listings of the Switch 2.
- Introducing a region-locked, Japan-only version of the console at a reduced price to discourage exports and resales.
Globally, the company is implementing a selective reservation system, restricting pre-orders to users with:
- At least 12 months of Nintendo Online membership, and
- A minimum of 50 hours of playtime on their accounts.
Despite these precautions, demand has already outpaced supply, prompting Nintendo to issue an apology and assure fans that additional pre-order waves will follow.
The Switch 2 itself marks a notable upgrade in terms of specs, featuring:
- A custom Nvidia Tegra T239 chip,
- 12 GB of LPDDR5X RAM, and
- A 7.9″ 1080p LCD display with up to 120Hz refresh rate.
Docked mode allows for 4K 60Hz output via HDMI, positioning the Switch 2 as a serious contender in both handheld and home console markets.
Nintendo’s strategy—higher retailer margins, anti-scalping safeguards, and major hardware upgrades—shows its intent to deliver a successful and more secure global launch for the Switch 2.
