Nintendo allows Japanese retailers to get higher profit margins on Switch 2

2025-06-02 21:50:29|Myriagame |source：minecraft skins

According to Bloomberg, Nintendo will allow Japanese retailers to get higher profit margins on Switch 2 consoles!

Retailers receive 5% gross profit margin for each console sold, which is higher than 2% of the informal industry standard.This will ensure that the Switch 2 gets significant placement at retail stores across Japan.

Nintendo raised retailers' profit margins to 5%, significantly higher than the industry standard by 2%, and analysts said they were intended to incentivize retailers to prioritize promotion and display the Switch 2.By increasing profit margins, retailers are more motivated to allocate better display locations for Switch 2 in stores, which may also drive sales of Switch 2-related games and accessories.

Analysts say Japan is Nintendo's core market, but it is also facing pressure from competitors such as Sony PlayStation.Higher profit margins can drive retailers to prefer Nintendo products in purchase and inventory management, ensuring that the Switch 2 can quickly occupy market share in the early stages of its launch.

As Nintendo's next-generation console, the supply and demand balance in the early stages of its launch is crucial.By increasing retailer profit margins, Nintendo may want to ensure that retail channels actively cooperate to avoid scalpers' price increase in the early stages of PS5 due to supply shortage.Higher profit margins can also attract more retailers to participate in sales and expand their distribution network.

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