It costs $50 more to buy a higher model. The benchmark key price hasn't fallen over the past four years.
The recently announced "OLED Model" Nintendo Switch is selling for 50 percent more than the standard $300 model when it launches October 1. But it's estimated that producing the new model will cost Nintendo just an extra $10 and increase the company's profit margin on the hot end of gaming consoles. p>
This cost estimate comes from Bloomberg News' Takashi Mochizuki, who breaks down the estimated production increase as follows:Samsung's 7-inch OLED screen: $3 to $5 more per unit (storage capacity) Additional internal 32 GB): $3.50 per unit (according to Akira Minamikawa of Omdia) New w/LAN port and other improvements: "A few more dollars" for each
loss leaders and profit centers
Historically, use Many console makers own their own hardware to attract more audiences of potential software customers (and the associated console manufacturer licensing costs) sold at a cost or at a loss. But while Nintendo initially sold the Wii U at a loss, it has made a profit per sale since its launch, with estimates at the time costing $300 (per unit) to produce the $300 system. The year is 2017. Read more Nintendo warns that a global shortage In chips useful for the production of switches, Nintendo's production costs may have decreased in recent years, although this trend may be due in recent months due to the shortage of semiconductors around the changing world. In any case, the MSRP standard switcher has not changed in more than four years of the console's existence on the market.
This is a bit surprising, as the average console usually sees its first price drop two years or so after its initial release. But in this case, too, it is not surprising because the key still sells well at its original price. Even the successful PS4 saw its first price drop in less than two years after its US launch, and the Wii achieved hot sales less than three years after its launch. Instead, the Switch celebrated its fourth anniversary without changing its offer price.
READ MORE What does the 'OLED model' mean for the future of the Nintendo Switch? Do the stores and provide a slope for customers that are more sensitive to the price of the transformer. Also, it's not hard to predict the future when the new OLED switch will simply replace the old standard $300 model and, instead of cutting the price outright, will give customers a small statistic. Regardless, the production cost of the new OLED model is only part of the pricing equation. The real question is whether consumers will generally see the screen improved and other hardware changes worth $50, roughly a 17% increase in the asking price. Nintendo's hardware pricing metrics in 2022 will help a lot in answering this question. List of Nintendo Pictures p>
Nintendo's 'OLED model' costs just $10 to produce