Nintendo denies increasing its profit margin in the new version of “Switch”

The production cost of the new version of the Switch will increase by about $10 per unit.

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The Japanese computer game company "Nintendo" denied the increase in its profit margin in the new version of the "Switch" game console, compared to the current version, whose price is less than 50 dollars.

"The claim that its profit margin in the new version will increase compared to the original version is incorrect," Bloomberg News Agency quoted the company's headquarters in Kyoto, Japan, as saying.

The company added in a statement on the social networking site "Twitter", that it does not intend to launch any new model, after the expected model, which is equipped with a seven-inch screen with OLED technology, which is expected to be launched next October.

Some analysts had previously stated that the cost of producing the new version of the “Switch” gaming device would increase by about $ 10 per unit, compared to the cost of producing the current version, which means that “Nintendo” can achieve a higher profit margin in light of the price of the device. The new one is $350, while the current device is $300.

It is noteworthy that “Nintendo”, which achieved record profits during the boom period of the computer games market during the pandemic of the emerging Corona virus last year, depends on the new gaming device “Switch” to maintain the pace of its profits, after the companies “Sony Group Corp.” and “Microsoft” introduced » The two competitions are new gaming devices in the past year.

At the same time, the reaction of investors to Nintendo’s announcement of developing a new device and its price was negative, as the company’s share price fell by more than 5% since the announcement of the new device earlier this month, and the share price fell during yesterday’s trading by about 2% .

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