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Forums - Nintendo Discussion - Report: Nintendo Denies OLED Profit and Any More Iterations

 

What do you think?

OLED overpriced and Switch Pro incoming 5 10.87%
 
OLED overpriced, no Switch Pro coming 14 30.43%
 
OLED fairly priced, Switch Pro incoming 6 13.04%
 
OLED fairly priced, no Switch Pro coming 12 26.09%
 
Can everyone shut up 7 15.22%
 
About Switch Pro 0 0%
 
And please look 0 0%
 
forward to 0 0%
 
Switch 2!!!!! 2 4.35%
 
Total:46

https://www.gamesradar.com/nintendo-denies-another-switch-revision-is-being-planned/

So, looks like both the profit of $40 per OLED console (in addition to whatever they normally profit from Switch's being sold) is bogus. Also, great news for gamers like me that want Switch 2, as it looks like OLED is their final iteration of original Switch hardware! Or at least "at this time."

I am aware that "no plans for launching any other model at this time" doesn't necessarily mean they aren't developing another iteration and that they simply may not have planned out the launch date for it. I'm hopeful they don't release a Switch Pro, that way we can get a Switch 2 as early as possible (we will need it even more than a Pro if Valve succeeds at what they are trying to do and sales start to slow down). Hoping for 2023 Switch :)



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I agree they aren't making 40 USD more profit from OLED, but to say this won't increase their profit margins is disingenuous



The OLED model is fairly priced because people will buy it, anyway.



My bet with The_Liquid_Laser: I think the Switch won't surpass the PS2 as the best selling system of all time. If it does, I'll play a game of a list that The_Liquid_Laser will provide, I will have to play it for 50 hours or complete it, whatever comes first. 

Lite and Original Switch I'm sure have very large profit margins at this point, so I would expect OLED to not be any higher than those are.

And I'd bet OLED drops to $300 to replace the original perhaps late 2022. Then Nintendo could do the first real price cut for the Switch in maybe late 2023 dropping Lite/OLED to $150/$250 to keep it selling strong through to a holiday 2024 Switch 2 launch as they will probably still want Switch to be selling quite well when Switch 2 comes out.

Don't think there is any "pro" Switch in the works. The rumors of 4k DLSS I think were definitely just intel from Switch 2 prototypes being mixed up with intel from the OLED model.

OLED model is fairly priced because original model is at $300 and they're obviously not going to put it on sale when Switch is once again this year the second hottest selling system ever behind the DS's best years. It would make no business sense to have the OLED any less than $350. But the sales decline should start for Switch next year, so it shouldn't take too terribly long to see the OLED model fall to $300 and the original likely gets discontinued.



Imo, OLED is overpriced regardless of their profit margins compared to non OLED version. But this isn't abnormal for Nintendo either.



             

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IcaroRibeiro said:

I agree they aren't making 40 USD more profit from OLED, but to say this won't increase their profit margins is disingenuous

They are telling us point blank that it won't increase their profit margins, probably because those are the numbers of price versus cost.

Not sure why you would think it's disingenuous, what motivations and what numbers did you have in mind?

They may even be reducing their profit margins due to new costs of parts, manufacturing, distribution and marketing. All we know is that the profit margins won't be increasing versus the old model.

Also, it may be advantageous for them to announce an increased profit margin to investors, so I'm not sure what's disingenuous.



Fudging the truth when making financials statements can land you in hot water



padib said:
IcaroRibeiro said:

I agree they aren't making 40 USD more profit from OLED, but to say this won't increase their profit margins is disingenuous

They are telling us point blank that it won't increase their profit margins, probably because those are the numbers of price versus cost.

Not sure why you would think it's disingenuous, what motivations and what numbers did you have in mind?

They may even be reducing their profit margins due to new costs of parts, manufacturing, distribution and marketing. All we know is that the profit margins won't be increasing versus the old model.

Also, it may be advantageous for them to announce an increased profit margin to investors, so I'm not sure what's disingenuous.

Also, with the chip shortages, it is possible manufacturers are charging more for some parts than they used to because they are in such demand.



Switch 2 in 2023 would be one of the dumbest things Nintendo could do. The ideal timing for a Switch successor is a launch during the fiscal year where the current Switch platform can be expected to fall below 10m units in shipments and that's not anytime soon.



Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Shipments

RolStoppable said:

Switch 2 in 2023 would be one of the dumbest things Nintendo could do. The ideal timing for a Switch successor is a launch during the fiscal year where the current Switch platform can be expected to fall below 10m units in shipments and that's not anytime soon.

Regardless of what you think is dumb, they have historically done roughly 6 year windows (sometimes less like Wii U -- Switch, sometimes more). They obviously think its smart. You have to plan out generational leaps years in advance, it can't be a reactive thing, otherwise they will have a bunch of their teams making new engines/games exclusive for Switch 2 and suddenly tell those teams to wait a year or two to release it from when they normally would. Switch had to come early because of Wii U's failures, which is why it was so dependant on Wii U ports early on. Nintendo will want the return on those games as soon as possible and there is no way, 4+ years into Switch's life, that Nintendo isn't working games for their future device. When they started Switch's life they probably mapped out all the games they wanted to make from their teams for this device before moving on to the next device's games.

And Nintendo doesn't want a year where they only sell 10-15m units. That stretches out the lifetime sales of Switch, which seems great to us that care about lifetime numbers, but they are much more concerned with profits each year (not generational profits). If they think they will sell a lot more units by having Switch 2 out then they will absolutely do that. Why sell 10-15 mil Switch 1's in 2023 when they could sell 15-20 mil Switch 2's + 5 mil Switchs (discounted) in 2023?

People always fixate on generational numbers on this website, but that's not how businesses work. Nintendo does't care about last year's financial report, shareholders don't either. It's all about the present year's financial outlook.