Rumors that the profit margin for the Nintendo denied the July 15 news report, which asserted that the profit margin of the Nintendo Switch (OLED Model) would increase compared to the Nintendo Switch. The Japanese gaming giant also clarified that though the Nintendo Switch (OLED Model) will launch in October 2021, there are no plans for launching an additional, more advanced model, at this time.
A rumor made the rounds last week, claiming that the Nintendo Switch OLED reuses old Joy-Cons and other hardware to keep manufacturing costs relatively low. It was believed that the new console only cost Nintendo $10 more to produce, despite a $50 price hike compared to the original Nintendo Switch console. This led customers to believe that Nintendo would be increasing its profit immensely, raking in a notable profit of around $40 per Nintendo Switch (OLED Model) unit. The report used a variety of figures, claiming that the new OLED screen costs between $3-5 per until and the new 64GB storage costs about $3.50 per unit to manufacture. With rumors that costs were low but prices were high, Nintendo fans were not happy.
Responding to the Bloomberg report and industry research from DSCC’s Yoshio Tamura, the newer model and the original Nintendo Switch.
Nintendo’s response comes just in time, especially as fan frustration is running high. The claims that Nintendo would be making increased profits for minimal costs with the Switch (OLED Model) arrived during the perfect storm of fan disappointment, especially since the newer model doesn’t live up to the Nintendo Switch Pro expectations. With rumors claiming that Nintendo intends to maximize profits without giving fans increased power or major performance improvements, it was going to be a hard sell for most gamers. After the alleged profit margin report was released, many fans were ready to boycott the Nintendo Switch OLED, believing Nintendo was ready to pull one over on them.
It’s still unclear how big the profit margin for the Nintendo Switch (OLED Model) is, especially given the clear lack of major improvements between the newest version and Nintendo’s 4-year-old console. It’s likely that the Nintendo Switch OLED still has a larger profit margin than the Nintendo Switch, but Nintendo won’t be receiving the drastic $40 that was asserted in the original rumor if Nintendo’s claim is believed. Fans will have to make their own decision regarding the expensive upgrade, despite Nintendo not providing ample reason for Nintendo Switch owners to switch to the OLED model.
Priced at $349.99, the Nintendo Switch OLED will hit stores shelves this fall on October 8.
Source: Nintendo/Twitter
