Japanese video gaming company Nintendo Co NTDOY on Monday denied reports that claimed profit margins of the new Switch OLED model would be higher compared with the current version, which is about $50 cheaper.
What Happened: Nintendo said in a tweet that the recently announced Nintendo Switch (OLED Model) will launch in October, and the company does not plan to launch any other model at this time.
A news report on July 15, 2021(JST) claimed that the profit margin of the Nintendo Switch (OLED Model) would increase compared to the Nintendo Switch. To ensure correct understanding among our investors and customers, we want to make clear that the claim is incorrect. (1/2)— 任天堂株式会社（企業広報・IR） (@NintendoCoLtd) July 19, 2021
Why It Matters: Analyst reports had estimated that upgrades to the new Switch will cost about $10 more per unit to produce, as per a Bloomberg report — implying the company could earn higher profits after pricing the new model at $350.
Nintendo is counting on the new Switch to keep the sales momentum going after the pandemic-fueled gaming boom. Rivals Microsoft Corp MSFT and Sony Group Corp SONY launched new consoles last year in PlayStation 5 and Xbox Series X and Series S.
Price Action: NTDOY shares closed 0.84% lower at $70.55 on Friday.
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