If the price on the Nintendo Switch looked a few dollars high to you when Nintendo announced the system would be $299, you’re not alone. But there’s a good reason for it. Bloomberg‘s Yuji Nakamura says Nintendo is selling the Switch at a profit right from the get go, and everything about its launch is pointed in that direction.

Selling the system at a profit is the reason there aren’t any game bundles available at launch. It’s also why the Joy-Con Grip included with the system isn’t the same Joy-Con Charging Grip you can buy separately. Instead of a battery-charging power pack, it’s just some plastic.

Those who do not learn from the past…

Console makers tend to sell their systems at a loss, writing it off as an investment in the consumer. If a gamer buys a system from them, they’ll buy five, ten, twenty games at a much higher profit margin in the future. Nintendo, on the other hand, takes a more conservative approach. They sell their systems for a profit, however small. The only exception to that was the Nintendo Wii U, which the Switch is replacing after just three and half years. Everything from the look of the system down to its price seems to suggest Nintendo is keen to avoid repeating history.

The Nintendo Switch launches on March 3, and the company is already looking to increase production on the system. According to Bloomberg, the company has “huge expectations based on how Switch reservations are doing,” including the Japanese audience having already pre-ordered 80% of the nation’s allotment of Switch consoles.

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