The new console, which will likely be priced higher than the original at $ 299, could be announced ahead of the E3 conference starting June 12 to allow publishers to showcase their full lineup of Switch games at the global event, the people said, asking not to be named. because the plans are not yet public. It will be sold alongside the Switch Lite at $ 199, with the standard Switch being phased out over time.
Assemblers will start shipping the new model – whose trade name is only known to a handful of people at the Kyoto-based company – as early as July and production is expected to increase. until a peak in the October to December quarter. This despite widespread semiconductor shortages that have affected the supply of everything from automobiles to televisions, headphones and game consoles, including the Switch itself.
A Nintendo spokesperson declined to comment.
Nintendo must compete for the attention of gamers with a new generation of consoles introduced by its rivals Sony Group Corp. and Microsoft Corp. in November. Their PlayStation 5 and Xbox series X the machines boost the visual fidelity, speed and performance of their predecessors, and both have been in extremely limited supply since their launch. The Switch manufacturer’s response will be to upgrade its flagship console to a 7-inch Samsung Display Co. and faster OLED display Graphics silicon from Nvidia Corp. makes it capable of 4K output when connected to a TV, Bloomberg News previously reported.
What Bloomberg Intelligence says
An upgraded switch can be extremely helpful in extending the lifecycle of the platform. Sony and Microsoft have both had success with mid-cycle upgrades as a way to drive the growth of over-the-air services, and as this becomes a bigger driver for Nintendo, it would be beneficial not to fragment the database. ‘users on different platforms.
– Matthew Kanterman, analyst
Read more: Nintendo to use faster Nvidia chips in new 2021 Switch model
More expensive components and rising labor costs in China are expected to push the price of the new Switch up from the $ 299 that the console has launched since its launch in March 2017. Although the final retail price not yet known, the vendors expect their revenue per unit of business with Nintendo to increase.
Nintendo shares rose for six straight days before Thursday, bringing it closer to all-time highs on apparent expectations of an impending announcement of new hardware.
Suppliers are confident they can fulfill Nintendo’s orders despite ongoing chip shortages. Its production lines are better prepared for the potential component upheaval, and the parts Nintendo uses face less competition than those of the more powerful consoles of its rivals.
Nevertheless, the company’s ability to meet consumer demand will not be guaranteed, as the shortage of display driver ICs and Bluetooth chips has led to several shutdowns and restarts of production of the switch in place, have people said. Nintendo chairman Shuntaro Furukawa told his earnings press conference earlier this month that demand for the Switch remained high and the company was unable to produce as many units as it did. wanted it.