If they structure their supplier contracts anything like the auto industry does, that would only be because they are on the back end of the product’s production lifecycle.
I think they lost the appetite for loss leading around the time the PS4 and Xbox One came out. I have no insider information, but this is what I tend to hear from those that do. Nintendo famously doesn’t loss lead, and that’s a long standing policy, but the latest word on Switch 2 is that their price increase keeps them profitable but with smaller margins than they had when it initially launched.
If they structure their supplier contracts anything like the auto industry does, that would only be because they are on the back end of the product’s production lifecycle.
I think they lost the appetite for loss leading around the time the PS4 and Xbox One came out. I have no insider information, but this is what I tend to hear from those that do. Nintendo famously doesn’t loss lead, and that’s a long standing policy, but the latest word on Switch 2 is that their price increase keeps them profitable but with smaller margins than they had when it initially launched.