Nintendo Debunks Claim That Switch OLED Has Increased Profit Margins

Nintendo has come forward to shut down claims that its new Switch OLED model was priced higher to enjoy higher profit margins compared to the current model.

Taking to Twitter a couple of days back, Nintendo noted that all such claims are “incorrect” and that its new Switch OLED model will not have the suggested profit margins. Nintendo however did not clarify if both the OLED and the standard models have the same profit margins or if the former will make do with less.

Last week, Bloomberg reported that a Switch OLED model will cost Nintendo “around $10 more per unit” to manufacture. The upgrade will be retailing for $350 which comes to be $50 more than the current model. Nintendo was hence suggested to be spending just $10 of that increased $50 cost and pocketing the remaining $40.

More recently, research analysts shared concerns that such an aggressive pricing model “could set a precedent for charging more across the industry” should the Switch OLED model find success.

The concerns also included an anonymous PlayStation official who stated that Sony Interactive Entertainment is “closely monitoring” the market response. The suggestion being that if Nintendo is successful in its pricing strategy, it could convince other console manufactures such as Sony to do the same with its PlayStation hardware revisions in the future.

The Nintendo Switch OLED model will launch on October 8, 2021. Nintendo is already taking pre-orders, at least while stocks last, and interested buyers can choose from two colors: one with white Joy-Con controllers and a white dock, and a second with red-and-blue Joy-Con controllers and a black dock.

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