Some confusion came about after a recent Bloomberg report claimed that the price of the recently revealed Nintendo Switch (OLED Model) has a higher profit margin than the original console. They stated that the new hardware upgrades (larger OLED screen, improved speakers, Ethernet port) adds approximately $10 to the Switchs cost to produce. Since the new console variant is priced at $350, precisely $50 more than the base model, they saw this as a $20 per console increase in profit margins.
Nintendo appears to have been offended enough by this claim to make an official statement on their investor relations Twitter account, calling that report false.
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.
This is immediately followed up by another tweet, also shutting down any rumors that another console variation is in the works.
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.
This is in reference to the nearly two-year-old rumors that Nintendo is going to release a version of the Switch that is more powerful. Since such an idea has not been confirmed, its taken on the community name of Switch Pro in discussions. Many folks expected the Switch (OLED Model) to be the Switch Pro, and were disappointed to discover that it has no increase in performance, just in display.
Its hard to have any opinion about this, really. The Switch (OLED Model) may cost more than the base model. And it may have a higher profit margin as a result. But both models are still more affordable than other current generation consoles, while also offering hardware and software features that the others don't. Whether Nintendo is pulling a bigger profit from them or not doesnt seem like something worth being upset over.
Nintendo denying any claims that a Switch Pro is in the works can be a more discouraging fact. But it might also be misdirection. No plans for launching any other model at this time, doesn't mean they aren't producing one, just that they aren't going to launch one right now. In our experience, its better to not try to predict what Nintendo has planning.
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