Nintendo Co. is making an unusual move with its Switch 2 distribution in Japan: It’s setting wholesale prices so retailers can earn more from each sale.

Store operators will be able to make a gross margin of about 5% on each Switch 2 sold, higher than the informal industry standard of roughly 2%, according to people familiar with the plan. The decision will help bolster domestic retailers and ensure the new console is given prominent placement at outlets across the country, the people said, asking not to be named as the information is private. Shares of Nintendo fell as much as 2.2% in Tokyo on Monday.