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.