Nintendo’s Retail Strategy Aims to Boost Switch 2 Success in Japan

Nintendo Co. is adopting an unconventional wholesale pricing strategy for its Switch 2 console in Japan, allowing retailers to earn higher margins per unit. Store operators are expected to make a gross margin of about 5% per sale, significantly above the informal industry standard of 2%.

The company is prioritizing a strong domestic launch, with a Japan-exclusive version priced at ¥49,980 ($350), compared to the global $450 price tag. This MOVE comes as traditional retail models face pressure from digital game sales and shrinking accessory margins.

Retailers have struggled with declining profitability as newer devices require more shelf space, increasing operational costs. Nintendo’s approach signals a bold attempt to secure retailer support in its home market ahead of the June 5 global launch.