IDKFA
I am Become Bilbo Baggins
I agree, but Sony also has a vastly different strategy and initially sell their hardware at a loss.
Nintendo is going to be profiting on each unit sold of this thing from day 1.
Right, but families and causal make up a large portion of their audience. Price it too high and they'll struggle to sell it to the masses.
A good way to strike that balance while also being profitable is to launch with a cheaper LCD screen rather than an OLED. I'm sure Nintendo considered launching with an OLED, but the cost per console would have been too high.