Nintendo denies rumors about OLED Switch having higher profit margin

The Nintendo Switch OLED Model is more expensive than the other models, but that doesn’t mean it’s generating more profit for the company. Nintendo clarified the situation on its Twitter business account, stating that it is not true the information regarding production costs for greater profit margin.

According to the post, it all happened because of a news report published a few days ago in the press, which reported that the profit margin of the OLED Switch would increase compared to the traditional model. “To give better understanding to our investors and consumers, we want to make it clear that this statement is incorrect,” the company wrote.

With a suggested price of $350 —$50 more than the traditional $300 edition—the OLED Switch has become the developer’s most expensive video game. An analysis published by Bloomberg indicated that the profit would be higher for the company, as the cost of production would be only $10 more expensive than the traditional model.

According to an analysis by Bloomberg, which detailed the price of each component of the OLED Switch, the cost of production was calculated as follows: each OLED panel screen manufactured by Samsung costs from $3 to $4, the 32 GB more storage comes out for $3.50, and the new dock with network cable input is valued at “a few dollars more” when compared to the previous model.

Nintendo also took the opportunity to state that it does not intend to release another model of the Switch. For now, the only new device planned is even the OLED Model, which arrives in October outside and only in 2022 in Brazil.

This also demystifies rumors that the company would still announce another model, the so-called “Nintendo Switch Pro”, more powerful and capable of generating graphics in 4K – the target of constant rumors in recent weeks.

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