Nintendo Denies Reports of it Offering Higher Gross Margins to Japanese Retailers for Switch 2

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Earlier this week, there was a rumor suggesting Nintendo could increase domestic sales of the Switch 2 by letting Japanese retailers keep a 5% profit margin on each console sold. However, Nintendo has since debunked these reports via social media platform X, stating that the information is false and their standard practices prohibit them from sharing details about their retail and distribution partnership deals.

On June 2, 2025 (Japan Standard Time), a false news article about the wholesale price of Nintendo Switch 2 in Japan was shared on X. We would like to clarify that this report is unfounded. Nintendo does not release any details about its business conditions with distributors and retailers.

Although it’s possible Nintendo could be employing these strategies to strengthen its physical store sales, the lack of concrete proof weakens the initial Bloomberg report. The article suggests that Nintendo may prefer larger profit margins associated with bundling consoles with extra games or accessories instead of relying on slimmer profits from selling just the console unit alone. This is due to retailers typically making more money when they sell bundled products rather than standalone consoles.

The upcoming Nintendo Switch 2 is expected to perform exceptionally well in Japan, as revealed by President Shuntaro Furukawa in April, with over 2 million Japanese fans registering for the lottery system used to manage pre-orders. In a recent update on platform X, Furukawa expressed regret, stating that not all lottery participants would receive their consoles on release day. However, he assured an increase in Nintendo’s production and shipping abilities going forward.

In addition, we intend to manufacture and deliver many Nintendo Switch 2 devices in the future,” he said. “We deeply regret any inconvenience caused by the delay in meeting your demands and appreciate your patience.

As a devoted fan, I can’t help but notice the significant price difference between the global and Japanese versions of the Switch 2, which might be contributing to its popularity in Japan. While the global edition retails for ¥69,990, the Japanese-exclusive version is available for just ¥49,980.

Nintendo has been making efforts to keep resellers, or scalpers, from influencing the market before the launch of Switch 2 on June 5. In fact, they’ve teamed up with several online marketplaces such as Yahoo! Auctions, Yahoo! Flea Market, Rakuten Rukuma, and Mercari in May to tackle this issue.

Nintendo, along with its three associated service providers, will implement strategies to eliminate fraudulent postings of Nintendo items such as the Nintendo Switch 2, which breach their terms of agreement. This may include the service providers actively deleting such listings and setting up a partnership for data exchange to better detect and handle these issues.

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2025-06-03 17:12