Nintendo’s upcoming new Switch model, the Nintendo Switch OLED, is estimated to cost the company only about $10 more per unit.
That’s what Bloomberg tech reporter Takashi Mochizuki writes in a new report about Nintendo’s new Switch model. The Switch OLED will sell for $349.99-$50 more than the current model, meaning the new model will further improve the profit margins of the Kyoto-based company. Aside from a new larger OLED display, Nintendo’s OLED model will come with a redesigned dock with a built-in LAN port — a new feature that will cost the company just “a few bucks more,” according to Bloomberg.
Now Nintendo is betting that momentum can be sustained with a new $350 model, a jump from the original $300 standard model price tag, and a rejection of traditional console economy. Mochizuki writes in his new report. “In an industry where consoles typically get mid-life price cuts, the Switch takes it to the next level – thanks in large part to a bigger and better OLED screen and some extra storage. The upgrades are estimated to cost about $10 more per unit, meaning Nintendo is improving profit margins and relying on its rich library of games to keep sales going.
The article estimates the additional costs of the individual new components within the Switch OLED:
The 7-inch OLED screen of the new Switch from Samsung Display Co. costs $3 to $5 per unit, according to Yoshio Tamura, co-founder of the research firm DSCC. According to Omdia’s Akira Minamikawa, increasing the internal storage to 64 GB costs another $3.50. The other added components, such as the new console stand and LAN port, would add a few bucks more. Nintendo has been selling the Switch at a profit since launch.
Based on this report, Nintendo is making an additional $40 profit on the new Switch OLED model – an upgrade that some consider to be an intermediate model of sorts.
The Nintendo Switch OLED will launch worldwide on October 8, 2021.
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