The Nintendo Switch with an OLED screen may become one of the few consoles that will not be sold at a loss. According to Bloomberg, the new Switch will cost $350 — $50 more expensive than the previous version. Despite the fact that its production turned out to be more expensive by only $ 10.
In the video game industry, it is customary for the first time to sell consoles in the negative. So companies can sell them to as many gamers as possible. Instead of iron, games and services are responsible for earning money. This model is followed, including the Xbox Series X|S and PS5.
But Nintendo does things differently than Microsoft and Sony. Its Switch has been sold at a profit since its release, and the company is asking for even more for the new version of the console. Although the Xbox One X and PS4 Pro were also more expensive than their predecessors, they were also much more powerful than them. While according to some analysts, there are no significant improvements in Switch OLED that could justify the increase in cost and pay off.
“The new console is barely half ready and will not help in any way in maintaining the dynamics of the platform. Last year, Switch reached its peak, and now its sales will only fall,” Kazunori Ito from Morningstar believes.
But other analysts are sure of the opposite. Independent gaming consultant Serkan Toto believes that the improved display of the new Switch is good enough to “squeeze out $50 more.” He recalled the huge popularity of the console — in the current fiscal year, the Japanese can reach the mark of 100 million copies of Switch sold from the day of release.
“I don’t see any reason why this model will fail,” Toto said. “Nintendo can afford the price increase due to high demand.”
Nintendo’s decision may affect the behavior of other console manufacturers as well. According to a representative of the PlayStation division, Sony is now monitoring the market reaction to Nintendo. This may lead to an increase in the price of the PS5, the demand for which is also very high.
Investors are still unhappy with the new Switch. In the week since the announcement, the value of Nintendo shares has fallen from ¥66.76 thousand ($602.9) to ¥63.28 thousand ($575.32).
This version of the Switch will go on sale on October 8.