Sony “Keeps a Close Eye” on Nintendo Switch OLED as Industry May Look to Raise Prices

Nintendo Switch is a runaway freight train, which is enjoying impressive success several years into its cycle. As you may know, the company recently announced a revised hardware model, the Nintendo Switch OLED, but despite the inclusion of a better display – similar to the one used by the PS Vita almost a decade ago – it uses the same internals as its predecessor and costs $ 50 more.

Analysts believe that at this stage of maturity in the machine’s lifespan, the OLED only adds around $ 10 to production costs, which means Nintendo is pocketing the difference. It’s a sea change for the industry, which has typically seen hardware costs drop as the console ages. We saw a similar story with the PlayStation 4, where the PS4 Pro actually kept the base cost of Sony’s last-gen console pretty high – although the rebooted box obviously had more robust hardware.

According to The Japan Times (subscription), as reported by Nintendo Life, the PlayStation maker is “closely monitoring” the Nintendo Switch OLED, with Ace Research Institute analyst Hideki Yasuda noting that the handheld ” could set a precedent to charge more in the industry. ”. Sony, of course, has not been able to keep PS5 stock on the shelves since its launch last year, suggesting it could have gotten away with a higher price tag.

Obviously, the performance of the Nintendo Switch OLED remains to be determined: our colleagues at Nintendo Life note that consumer reaction has been mixed and that the manufacturer’s shares are down “by about five percent” since its disclosure. . But you can never count on the Japanese firm, and we wouldn’t be surprised if this new model kept its hybrid system healthy for years to come.