Nintendo Switch Contributed 18% of Gaming Revenue For Nvidia In Fiscal Year 2018

Nintendo Switch features the Tegra SoC which is developed by Nvidia. They have previously dabbled in the console market with the Xbox 360 and PS3 but they were largely ignored by both major console manufacturers for their current generation consoles. Nintendo is currently the only major gaming hardware company that is using Nvidia products and this seems to have worked out really well for them. There haven’t really been any detailed reports on how much Nvidia has made from the sales on the Nintendo Switch so far, but now an estimate from their recent financial results, as shared by Motley Fool, might finally give us an idea on how much they are making in term of revenue from the Nintendo Switch sales.

Their financial report has revealed that the revenue that was generated by the automotive solutions and the Nintendo Switch was around $1.53 billion with automotive revenue making up $558 million of it. If we subtract that revenue from the total, we can get “non-automotive Tegra processor revenue,” which can be considered as the Nintendo Switch processor revenue with a sales total of $972 million.

“It’s not entirely clear how Nvidia classifies the Nintendo Switch sales, but my guess is that since those chips are based on the very same Tegra processors that go into the automotive market, the embedded market, and the OEM market (although, again, Nvidia’s Tegra OEM business is likely minimal as the company has exited the tablet and phone markets), the margins are in the ballpark of what its OEM and embedded business typically generates — better than automotive, but worse than GPU gaming,” writes The Motley Fool’s Ashraf Eassa.

Doing a little math the Switch sold 17.79M units in the fiscal year 2018, so that equates to Nvidia making around $55 of revenue per Switch. Hopefully, they’re at work at improving the chip with that money so it can’t be hacked, unlike the current chips.

These numbers are still estimates and it will be hard to get the exact figures but this is the only revenue estimate that we have for Nvidia when it comes to the Nintendo Switch hardware.

Danial Arshad Khan

Founder of GearNuke.
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