Update | Nintendo sets wholesale Switch 2 price lower in Japan to encourage sales at physical stores

Nintendo of Japan has issued a statement on social media, explaining that it doesn't "disclose any information regarding business conditions with distribution and retail partners". Bloomberg writer Takashi Mochizuki has yet to comment, other than to note Nintendo's response in the article.

Original article continues as follows:

Physical storefronts in Japan remain a popular way for buyers to purchase the latest consoles and games. Even with impressive Switch 2 pre-order sales, Nintendo is taking no chances. A new Bloomberg report reveals that the company is offering the handheld to Japanese retailers at a surprisingly low wholesale price. Nintendo's goal is to ensure that the Switch 2 becomes the most successful console on the market.

Several retailers spoke with Bloomberg's Takashi Mochizuki about Nintendo's approach with the Switch 2. Normally, stores would earn a 2% gross margin for each console sold. It's challenging for businesses to profit from selling these systems, and they often rely on bundles, games, and accessories. However, with the Switch 2, the margin is a higher 5%. As a result, storefronts have more incentive to stock the new handheld and focus their marketing efforts on it.

U.S. retailers and stores in other regions will also be prioritizing the console before and after the Switch 2 release date. Still, statistics from 2022-25 show that Japanese consumers are less accepting of digital gaming. Physical media continues to have appeal, which means buyers rely on storefronts to purchase games. Electronics chain stores like Bic Camera are heavily advertising Switch 2 games at launch.

By setting a lower wholesale Switch 2 price, Nintendo also has its sights set on the competition. Sales of the PS5 still trail the PS4, while the Xbox is increasingly a non-factor. In 2024, the Switch became the best-selling console of all time in Japan. If Nintendo can convince owners of the handheld to upgrade, it will continue to dominate hardware sales.

With the help of retailers, Nintendo can also cash in on the lucrative mobile gaming market. With gamers spending so much time commuting and away from home, handhelds like the Switch and 3DS thrived in Japan.