Every Nintendo Switch costs the company around $257 to make.
The tablet itself, including the touchscreen, processor, and the dock together make the most significant amount of the entire deice, costing $167 to manufacture. The Nvidia processor and a “next-gen power supply” are the most expensive of the bunch.
As for the Joy-Con controllers, each one cost around $45. For reference, the Switch retails for $300. A single Joy-Con controller costs $50. This means Nintendo has a relatively small profit margin on both the console as well as the Joy-Con themselves, which is surprising, assuming the report is correct.
Traditionally, game controllers have a much better profit margin for console makers than the console itself, but seemingly not the case for the Switch.
Nintendo previously said it’s not selling the Switch at a loss. This, coupled with the details from the report above, could indicate we won’t be seeing a price cut anytime soon.