Nintendo refutes Switch OLED costs just $10 more to produce, "no plans" for Switch Pro

[midian182]

What just happened? Nintendo has taken the unusual step of denying a report claiming the upcoming Switch OLED model costs just $10 more to produce than the base version—despite being $50 more expensive. The company also addressed speculation that a Switch Pro would arrive next year, stressing it has “no plans at this time” for launching other models.

Bloomberg spoke to a pair of analysts last week to get a production cost breakdown of the Switch OLED upgrades. The display from Samsung Display Co was reportedly the most expensive addition, costing $3 to $5 more per unit. Adding another 32GB of storage adds $3.50 to the production costs, while other upgrades such as the new kickstand and ethernet port total cost a few dollars more. In total, it was claimed Nintendo is paying just $10 more to produce the Switch OLED model while sticking $50 onto the price tag.

It appears that Nintendo took exception to the report. The company released a statement on its official corporate Twitter account that read: “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.”

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. (1/2)

— 任天堂株式会社（企業広報・IR） (@NintendoCoLtd) July 19, 2021

Most companies stick to the “we don’t comment on speculation or rumor” line when it comes to these reports, but Nintendo wanted to set the record straight in this instance, though it never revealed how much extra the Nintendo Switch OLED really costs to produce. Unlike the majority of previous and current consoles, the Switch consoles are sold at a profit.

Nintendo also addressed speculation that a Switch Pro with 4K and DLSS support would arrive next year, something that would likely put people off buying the OLED model. “We also want to clarify that we just announced that Nintendo Switch(OLED Model) will launch in October, 2021, and have no plans for launching any other model at this time,” it tweeted.

We also want to clarify that we just announced that Nintendo Switch(OLED Model) will launch in October, 2021, and have no plans for launching any other model at this time. (2/2)

— 任天堂株式会社（企業広報・IR） (@NintendoCoLtd) July 19, 2021

The Nintendo Switch OLED model will cost $349.99 when it releases on October 8.

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https://www.techspot.com/news/90470-nintendo-refutes-claims-switch-oled-costs-10-more.html

 

[nismo91]

$10 is incorrect. the correct value is $8.47. BOO YAH!

 

[CBTex]

If people are willing to pay the extra $50, why wouldn't they charge it? They will probably sell everyone they can make.

 

[umbala]

If people are willing to pay the extra $50, why wouldn't they charge it? They will probably sell everyone they can make.

So, companies should charge the maximum amount people are willing to pay? I hear this argument all the time and it's stupid. It's always made by people who have zero understanding of economics.

 

[Dimitriid]

I think Nintendo is misreading the room here quite a bit: People wouldn't care all that much about an extra 50 for an extra 10 bucks OLED display, if they offered SOMETHING ELSE that exited them. Sure they didn't want to create a more powerful model at this time and this is basically the same as the hardware refinements they've been doing since the gameboy advance really so over 20 years.

But well, that's kind of the issue as well: We're not in the early 2000s you can't still get away with selling a bunch of new units where your only feature is "Better screen!" anymore, because you actually have to compete with both other players on the console world and other players on the mobile gaming world.

If people are hyperfocusing on the expensive OLED is because you literally gave them nothing else when people are now used to getting substantial hardware improvements when there's a big announcement, they're just not filling the void they are themselves creating here.

 

[CBTex]

So, companies should charge the maximum amount people are willing to pay? I hear this argument all the time and it's stupid. It's always made by people who have zero understanding of economics.

I didn't say they should charge the maximum amount people are willing to pay. That number is probably too high which would reduce overall revenue. $50 more than the standard Switch doesn't seem too high to me. They should charge whatever maximizes their profit. Nintendo isn't a charity.

Do you have an answer to my question besides an ad hominem attack? What should Nintendo charge and why?

BTW, before you throw out insults, my undergrad major was economics so I have a bit more than zero understanding. To be honest, anyone who's ever bought groceries or gasoline has more than, "zero understanding of economics."

 

[Rayneofpayne]

Ah, Nintendo, the company that hates its own consumers.
If all it is or has is an OLED screen, and nothing else changed and that LCD only cost 10$ more than yes it is true.
Wait for the Fix it price quote on the parts.

 

[Rayneofpayne]

I didn't say they should charge the maximum amount people are willing to pay. That number is probably too high which would reduce overall revenue. $50 more than the standard Switch doesn't seem too high to me. They should charge whatever maximizes their profit. Nintendo isn't a charity.

Do you have an answer to my question besides an ad hominem attack? What should Nintendo charge and why?

BTW, before you throw out insults, my undergrad major was economics so I have a bit more than zero understanding. To be honest, anyone who's ever bought groceries or gasoline has more than, "zero understanding of economics."

Bro, you have no leg to stand on here, tech is different from regular economic studies, your talking about an industry where every 5-7 years they are charged with price fixing in multiple countries, most of the associated costs of production are poppycock at best, especially when you outsource the majority of labor to countries that don't play by a fair set of rules.

 

[Rayneofpayne]

$10 is incorrect. the correct value is $8.47. BOO YAH!

It's probably even cheaper in bulk from china, keep in mind years ago an arm processor of the top shelf variety in bulk you could order for $40 a piece and they were charging people more than $500 for the phone.

 

[VaRmeNsI]

If you buy from this evil company you get what you deserve.

 

[Austinturner]

If you buy from this evil company you get what you deserve.

How are are Nintendo evil?

 

[VaRmeNsI]

How are are Nintendo evil?

The way they enforce their IP for a start.

 

[Experimentongod]

LOL of course $10 is "incorrect" it's just an estimation. But they didn't say how much the cost actually increased...

 

[ZedRM]

Dear Nintendo,

It's time for an upgrade. Keep it 100% code and format compatible. Just take the existing hardware to the next level.

Thank You!