The Nintendo Switch is produced between Taiwan-based Foxconn and Japan-based Hosiden, with Foxconn accounting for the largest volume.[162] Nintendo did not plan to sell the Switch below manufacturing cost at launch,[163] as they had done for both the 3DS and Wii U at their respective launches;[164] Nintendo affirmed that the Switch would be profitable from launch during its 2016 fiscal year earnings report, as the company saw the console as a key earnings driver for 2017 and beyond.[165] Fomalhaut Techno Solutions, a Japanese product teardown firm, estimated that the Switch cost $257 to make compared to its $299 MSRP, with the console and dock at $167 while each Joy-Con costs $45.[166] Kimishima said that they may be able to see further profitability on the Switch when they can achieve volume discounts on components once they reach a level of about 10 million Switch units.[167]
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Following the January 2017 press conference revealing the unit's pricing and release date, journalists expressed concern at the apparently high system price, comparable to the PlayStation 4 and Xbox One consoles but lacking some of their capabilities, the cost of the paid-for Nintendo Switch Online service, and the small number of games that were confirmed for launch.[47][325][326][327] However, other analysts found that the pricing factors indicated the Switch was a more robust console, and would likely sell better than the Wii U, with The Legend of Zelda: Breath of the Wild being a key sales driver.[325] These analysts also figured the Switch fills an appropriate gap in hardware for those seeking more complex gameplay that is not offered in tablet and mobile gaming but who did not need to purchase a powerful "boxy" console.[328] Most analysts agreed that the success of the Switch depends on Nintendo's support and avoiding mistakes the company had made in marketing and promoting the Wii U.[328]
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