Nintendo denies profit margin increase for OLED Switch

Satsuki Then - Jul 19, 2021, 6:29am CDT
Nintendo denies profit margin increase for OLED Switch

Nintendo is taking Twitter to deny a report that was published last week that claims its profit margin will increase on the Nintendo Switch featuring an OLED screen. The report claimed that Nintendo was increasing the profit margin of the new model, and Nintendo said it wanted to “ensure correct understanding” for its investors and customers that the claim was incorrect.

Nintendo also said in a follow-up tweet that it wanted to clarify that it had only announced the Switch OLED model for launch in October 2021. Nintendo was clear that no other model was planned for launch at this time. Rumors have long suggested that an updated Nintendo Switch possibly with HD graphics, more power, and improved performance, was coming.

It’s certainly not outside the realm of possibility that such a console is in the works, and Nintendo simply doesn’t want to spill the beans just yet. The report of increased profit margin originally came from Bloomberg. In that report, it claimed that Nintendo had decided to increase the margins on the Switch that would launch in October.

Typically, as consoles age, prices get cheaper. However, Nintendo has been struggling to keep up with unprecedented demand for the console despite its age. All gaming manufacturers, including Nintendo, Sony, and Microsoft, have seen demand for their game console boom during the pandemic.

With more people stuck indoors during lockdowns, more people were spending their time playing games as a way to meet with friends and family. The upgraded screen is estimated to add about $10 in cost per unit produced. With Nintendo denying the rumor, it would appear that the new model launching in October will carry the same profit margin as the original. However, Nintendo didn’t talk specifically about its margins on the console.


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