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How Nintendo Prices Scarcity for Hardware Margins
Nintendo has never competed on specs. While Sony and Microsoft sell consoles at a loss, Nintendo consistently turns a profit on hardware from day one. This episode unpacks how the company uses deliberate scarcity, component selection, and lifecycle pricing to maintain margins on products like the Switch and its successor. We look at the economics behind the 'Nintendo tax' — why first-party games rarely drop in price — and how the company's pricing strategy creates a virtuous cycle between hardware demand and software revenue. Specific focus on the Switch OLED and Tears of the…
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