The new Nintendo Switch OLED is $50 more expensive, but only costs $10 extra to make
The Switch profit margin gets healthierBy Rob Thubron 18 comments
Recap: Nintendo's new Switch OLED model disappointed many fans when it arrived. While it does feature a slightly larger OLED screen, more storage, and a few other minor upgrades, many were hoping for 4K support, upgraded hardware, and DLSS. It's also $50 more expensive than the original. But how much extra is it costing Nintendo to make the new model compared to its predecessor? Just $10, according to a new report.
The Nintendo Switch OLED model will cost $349.99 when it releases on October 8. The extra $50 gets buyers a seven-inch OLED screen, 64GB of storage, an adjustable stand, improved audio, and a new dock with a wired Ethernet jack. That might sound as if Nintendo is spending a lot of money on these upgrades. According to Bloomberg, however, the actual price is just $10.
According to analysts, the most expensive upgraded for Nintendo is reportedly the display from Samsung Display Co., which will cost an additional $3 to $5. That extra 32GB of storage adds $3.50 to the production costs, while other upgrades such as the new kickstand and ethernet port total a few dollars more.
Unlike many other consoles, the Switch has always been sold at a profit. While the $10 figure may not include every factor that goes into adding the changes, Nintendo will no doubt be pleased to make even more money from its incredibly successful hybrid.
Earlier this month, Nintendo of America Manager of product marketing JC Rodrigo made it clear that owners of the current Switch should avoid upgrading unless they really care about the OLED screen. As for the rumored 4K Switch Pro, many still believe Nintendo will unveil it next year.
Nope. Not what's for. Stick with the current one if you're not digging the screen.--- JC Rodrigo (@JCRodrigo_) July 6, 2021