Nintendo is one of those companies that “does not comment on rumors and speculation.” And yet, sometimes rumors are seen as embarrassing enough to warrant official speaking out. This is precisely what has just happened.
Read also: Switch OLED: Analysts still expect a 4K “Switch Pro”
Nintendo has just cracked two tweets posted on its official corporate account in which it reacts to two recent rumors regarding the Nintendo Switch OLED and its plans for the future. Visibly disturbed by the noise made by these rumors, the Kyoto firm tries to cut them short in a catgorical way:
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. (2/2)
– 任天堂 株式会社 （企業 広 報 ・ IR） (@NintendoCoLtd) July 19, 2021
An article published on July 15 claimed that the profit margin achieved on the Nintendo Switch (OLED model) would be greater than that achieved on the Nintendo Switch. In order to ensure a good understanding of the situation of our investors and clients, we want to clarify that this statement is incorrect.
We also want to clarify that we just announced that the Nintendo Switch (OLED model) will be released in October 2021 and that we have no plans to release another model at this time.
The article referred to here by Nintendo is an article published by the American site Bloomberg in which analysts estimated that the changes made to the Switch on the OLED Switch would increase production costs by up to $ 10. Knowing that the OLED Switch is going to sell for 350 dollars and that the standard Switch is sold for 300 dollars (the US price is generally used as a benchmark price), these analysts expected a significant increase in the profits realized by Nintendo.
The Japanese manufacturer therefore has several reasons to deny this estimate. If this estimate is indeed false, it could mislead investors who would expect a considerable increase in profits made by Nintendo thanks to the release of the OLED Switch. And if these don’t ultimately happen, it could have a negative impact on Nintendo’s stock price.
Conversely, if this estimate is correct, the selling price of the Nintendo Switch OLED could send back to consumers and Nintendo fans the impression that the company led by Shuntaro Furukawa takes them for milk cows. Impression which may have been generated by certain editions of games produced by Nintendo.
Whether analysts’ estimate is true or false, it should be remembered that production costs are not set in stone. A console is not as expensive to produce when it is released and a year later due to technological developments. With the original Switch model not having really dropped in price since its launch in 2017, logic would dictate that it now brings in more Nintendo money than it did four years ago.
It’s all about timing
As for the second part of the denial, it responds to other assumptions of analysts who still expect the marketing of a more powerful Switch (as early as next year for some). And this, despite the announcement of the release next October of the OLED Switch. As a reminder, this “new” Switch is not more powerful than the original model. Its main difference is the presence of a new OLED display.
This second Nintendo remark is harder to believe. Console builders like to say that work on a new console starts as soon as the predecessor is released. And as regards Nintendo specifically, the Japanese glove has already stated on several occasions that its teams are constantly working on new technologies. Whether the release of Nintendo’s next console is near or not, everything suggests that the low-level manufacturer Kyoto has already, at the very least, vague plans for what will come after the OLED Switch.
While it is fashionable to always remind people that rumors should be taken with a grain of salt / conditional, it is just as true when it comes to official disclaimers from publishers or manufacturers. History has proven time and time again that they do not hesitate to deny information that is nevertheless true when it damages their image or comes out at a time that does not stick with the communication schedule they had set for themselves. All of these are therefore to be kept in mind.
What do you think of this double denial from Nintendo? When will the console that will succeed the OLED Switch arrive in your opinion? In general, do you believe the official denials? Tell us all in the comments below.