Compared to the industry-standard percentage, Nintendo is leaving more money in retailers’ pockets to ensure the platform’s availability.

Nintendo Co. is taking an unusual step by distributing the Switch 2 in Japan. The Big N has set wholesale prices so retailers can earn more on each sale. Store operators will earn a gross margin of about 5% on each Switch 2 sold, which is higher than the unofficial industry standard of around 2%. This was reported by Bloomberg. According to people who requested anonymity because the information is confidential, the decision will help strengthen domestic retailers and ensure that the new console gets a prominent place in stores nationwide.

Nintendo is investing heavily to ensure that its next hardware will be particularly successful at home. And the launch of the Big N’s new machine is not far away. Therefore, it’s no surprise that today’s news also includes an important warning from the Japanese company about the Switch 2‘s screen. The Switch 2 is set to launch worldwide on June 5, though not everywhere; Central America and China will definitely be left out. The price is expected to be $450 in most markets, although Nintendo denies this, so it may not be true.

However, the Japanese-language version, intended for domestic use only, will be priced at 49,980 yen (about $350). The company’s retail plans appear to align with this effort to ensure a strong domestic debut. Nintendo also wants to maintain its dominance, which only the PlayStation 5 could challenge, since Microsoft, despite gaining some ground in the Asian island nation with the Xbox Series S, still lags far behind Sony and Nintendo in sales.

Yet this move is surprising. Nintendo does not want to pocket a higher margin in Japan, even though the company could have aimed to earn more from domestic consumers. Instead, it’s launching a version of the console that’s exclusively for use in Japan.

Source: Bloomberg