Nintendo Switch OLED: Nintendo defends itself against rip-off allegations

Nintendo Switch OLED: Nintendo defends itself against rip-off allegations

Nintendo Switch OLED

Shortly after the announcement of the new OLED model of the switch console, some analysts and insiders spoke up. According to their claims, the production of the new variant costs only ten dollars more, but the additional cost compared to the original model is 50 dollars. A suspicion about a possible rip-off of customers therefore quickly arose. There have already been analysts such as Michael Pachter who assess the situation differently. But now Nintendo has also spoken out to take a position.

In a tweet, the manufacturer defended itself against the allegations and tried to clarify the situation. Nintendo also reiterated the rumors surrounding another Switch model.

"A news item dated July 15, 2021 claimed that the profit margin of the OLED model of the Nintendo Switch (buy now) compared to the Nintendo Switch. To make sure our investors and customers get it right, let's be clear that this claim is incorrect, and we wanted to make it clear that we just announced that the Nintendo Switch OLED would be out in October 2021 and we have no plans at the moment to bring any other model to market. "

Recommended editorial content At this point you will find external content from [PLATTFORM]. To protect your personal data, external integrations are only displayed if you confirm this by clicking on "Load all external content": Load all external content I consent to external content being displayed to me. This means that personal data is transmitted to third-party platforms. Read more about our privacy policy . External content More on this in our data protection declaration. Nintendo did not go into financial details in the tweet. But it was apparently very important for the Japanese manufacturer to put the matter in the right light. How big the profit margin will actually be with the Nintendo Switch OLED remains a secret for the time being.

Source: Twitter

Nintendo Denies Higher Profit On OLED Switch And More Models To Come

Nintendo Switch OLED


Nintendo has taken the unusual step today of addressing previous reporting about the Switch and its upcoming OLED model. Bloomberg has been reporting on a new Switch model for some time, and now Nintendo has gone out of its way to dispute two claims made in separate instances.

Here are the tweets they issued this morning:

What are these addressing? First, Bloomberg had a report last week that they estimated the extra cost of Nintendo’s new OLED screen, hard drive and other features like a LAN port was only around $10 extra to produce. That math indicated the Switch should probably be making another $40 per console at the new $350 price, joining ~$40 in profit the $300 Switch was reportedly already making.

Second, before the OLED Switch was announced, Bloomberg reported that the system would also have an upgraded chip for more power and the ability to render games in 4K when docked. When the OLED model arrived and that chip wasn’t there, the idea spread that Nintendo would maybe just launch that more upgraded model the following year or so.

Nintendo disputes both of these claims, but it’s a little hard to parse how these statements can both be fully true.

First of all, Nintendo is literally saying there will be no increase in profit margin compared to the Nintendo Switch, even though the OLED Model is priced $50 more. I can understand parts cost estimates being off by a bit, but it’s a very wide gap between $10 and $50. Is Nintendo including, what, marketing in that or something? It’s just hard to understand how they couldn’t be increasing profit per unit with that level of tech upgrade compared to that level of price hike, yet that’s what they’re claiming.

Nintendo Switch OLED


The second point, that Nintendo has “no plans for launching any other model at this time” is nebulous enough where it could mean almost anything. They might mean that they are never going to launch this 4K capable, chip-upgraded Switch that was rumored, implying the next hardware they do launch might be an entirely new console. Or they could just be parsing words and have not decided on a release window or date for a new, upgraded model besides the OLED, even if one is coming at some point. But it would be pretty bizarre with the Switch’s current power capability to not have any performance upgrades throughout the entire generation, and to have the OLED be the last new model of the current Switch, period.

Nintendo could have simply said nothing about any of this, but I suppose they wanted to indicate to investors they’re not expecting some giant profit windfall because of the Switch OLED, and also to say to the public that yes, you should buy the Switch OLED because there’s no better model around the corner. Still, both of these claims are hard to understand, given the context, and I’m curious what both an official teardown says about the materials costs and what the next few years brings in terms of further Switch upgrades, or the lack thereof.

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