Nintendo Refutes Report Talking About Its Switch 2 Selling Strategy in Japan

On June 2, Nintendo released a statement refuting a news report talking about the Switch 2’s selling strategy in Japan. According to the statement, Nintendo does not disclose any information regarding business conditions with distribution and retail partners.

While Nintendo did not specifically name the article or the publication, a Bloomberg piece released four hours prior to the statement talked about the topics Nintendo has refuted. The report said that Nintendo is “making an unusual move in Japan” as it reportedly sells the console at wholesale prices so retailers can earn a bit more per sale.

According to Bloomberg’s sources, store operators will be able to make more than 5% gross margin per Switch 2 sold, instead of roughly 2%, which is the industry standard. The report adds that this decision might be put in place to ensure the console is given prominent placement at outlets across the country, while also helping domestic retailers.

The article goes on to talk about how game consoles usually yield thin gross margins, and how a lot of retailers are currently losing money due to not being able to sell game bundles that include peripherals. This is due to the fact that gamers are now typically buying games online.

Currently, retailers in Japan are operating on a lottery basis when it comes to selling the Switch 2. One of Japan’s biggest auction sites, Yahoo Auction, has banned the resale of the console and will continue to ban it even after it comes out on June 5. This is one of the ways the company is fighting against scalpers in Japan.