Japanese video gaming company Nintendo Co (OTC: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.

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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 (NASDAQ:MSFT) and Sony Group Corp (NYSE: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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