Without a doubt, Nintendo disappointed millions of players with the announcement of its OLED Switch, and things aren't going to get any better after learning that this console was only created to boost the profitability of the already existing original Switch, and that despite the fact that the hardware used to make the console has gotten cheaper over the years since it was launched, the console's profitability has not improved. Since its release in 2017, the console's price has barely changed.
According to Bloomberg, the improvements made to the console (OLED panel, speakers, storage, base, and Ethernet) have increased the unit cost of production by roughly $10 (8 euros), but the user bears the expense. That you will receive is a model that is 50 euros more expensive than the original, but does not provide an added value that justifies paying the price difference, as you are paying for hardware and performance from a console that was released four years ago.
"Nintendo has not provided enough added value to justify a $ 50 rise in new hardware," said Kazunori Ito, the head of stock research at Morningstar. "The new hardware is just half-finished and would do nothing to maintain the platform's momentum. The Switch's popularity peaked last year, and it's only going to decline from here."
Other experts disagree with Kazunori's assessment, claiming that the improved screen and the Nintendo brand's appeal are more than enough to "squeeze $ 50 more out of consumers" as long as the console remains on schedule. will sell 100 million OLED Switches in the current fiscal year, despite the fact that the pandemic helped boost the console's data last year.
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"Nintendo has made a really brave move," says Takayuki Miyajima, chief economist at Sony Financial Holdings. "It is apparent that people will spend more on services and less on things in the future." "From a macroeconomic standpoint, the change could not be done if they were only concerned about the console's performance."
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