For those in Japan, Nintendo released two versions of the Switch 2. One option is exactly the same as what we have here in the states, but the other is region-locked. Region-locking means that the hardware can only play games released in that region, so the Switch 2 in Japan is only able to access Japanese-released titles. While that’s certainly a more limiting experience, it also comes with a hefty price difference.
The region-locked Switch 2 for Japan clocks in at 49,980 yen, which roughly equals $343. That is a very noticeable difference between the Switch 2 price in other regions. Obviously that means less money made for Nintendo, but now one analyst has come forward with an estimate of just how much it’s hurting Nintendo’s bank account.
According to Toyo Securities analyst Hideki Yasuda, Nintendo may be losing somewhere around $160 per region-locked unit sold. Yasuda came to this figure by combing through Nintendo’s most recent financial results and comparing data between regions. Furthermore, Yasuda estimates that it costs Nintendo somewhere around $400 to produce. Obviously Nintendo wants to make up this difference through software sold, but $160 is a rather steep deficit to make up.

AloJapan.com