Around two weeks ago Nintendo added the newest member to the Switch family with the launch of the new Switch OLED model. The major upgrade in the new version compared to the original Switch is pretty self-explanatory from the name itself. Essentially, the new variant packs a 7-inch OLED screen compared to the 6.2-inch LCD display on the original one. Sadly, the rumors of a Switch Pro with upgraded GPU architecture and such have been proved wrong. In fact, the company today has confirmed that it has "no plans for launching any other model at this time".
However, despite what many may perceive as minimal changes, there is a big upgrade in the price tag as the new OLED model comes in at $349.99 compared to the $299.99 price of the original Switch. This $50 hike in the asking price led analysts to estimate that Nintendo will be significantly raising its profit margins with the new model as according to them the upgrades like the new OLED screen, among other things, would only cost Nintendo an additional $10 per unit (via Bloomberg).
Nintendo today has opposed this claim stating that it is incorrect. Here's what the company has said in response to the Bloomberg report:
A news report on July 15, 2021(JST) claimed that the profit margin of the Nintendo Switch (OLED Model) would increase compared to the Nintendo Switch. To ensure correct understanding among our investors and customers, we want to make clear that the claim is incorrect.
Nintendo however didn't clarify what margins it expects from the new OLED model. The new Switch launches later this year in October and perhaps those numbers would be more clear to us once the company releases its earnings report in 2022.
Source: Nintendo (Twitter)
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