At $299, the Switch is priced a little higher than many had expected, but we may have learned why Nintendo did not decide on the $249 rumored price.

According to Bloomberg’s Yuji Nakamura, Nintendo is selling the Switch at a profit from the start. This is why we see no game bundle and other cost-cutting measures. Nintendo has always believed in making money on the hardware, aside from the Wii U, which was sold at a loss.

The competition, Xbox and PlayStation, do not sell their systems at a profit, thus taking a loss.


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