Sony is waiting on the release of the Switch OLED to see if they can hike up their prices
Sony is awaiting the release of the Nintendo Switch OLED, according to a new report by Bloomberg, and its potential success could provide the Japanese company with an excuse to raise the price of the PlayStation 5.
This would be a price increase of between PS30-50 (around AU $90) over the original switch, which cost PS279 ($300 - AU $449) at launch. A Bloomberg report commented on Nintendo's decision to offer the new Switch OLED console for $349.99 instead of the PlayStation 5, saying that Sony is "monitoring the market reaction to [Nintendo's latest] Switch OLED.". The price increase for the PS5 comes amid reports that hardware revisions are imminent, and whether Sony will consider raising the recommended retail price for the PS5 remains to be seen, but when it does, it is clear that Nintendo is taking a risky bet that consumers could buy the Switch OLED, which could ultimately affect prices across the industry.
Nintendo hopes momentum will remain strong, as the Switch OLED model will retail for $349.99, as opposed to the standard Switch, currently available for $299.99. This move follows the launch of the PS5 and Xbox Series X Midlife Refresh, which gave both consoles a breath of fresh air not only for the new generation, but for everyone else. Adding 10% to the unit price for Nintendo, the company could earn $40 more gross if the OLED Switch sells well. In a report by the Japan Times, Ace Research Institute analyst Hideki Yasuda said that Sony is interested in Nintendo's price strategy for its Switch OLED.
When Sony offered the PlayStation 5 at a price of $599, that was pretty good business given the amount of horsepower packed into its case. Rumours of a 4K dock, highly scaled Nvidia graphics and improved CPU are estimated at $399 (PS379) at a decent price of $100 (PS100) over the original Nintendo Switch model, which makes perfect sense. In any case, the upgraded Nintendo Switch Pro, which will hit the market in mid-to-late 2021 with a slew of the Japanese gaming group's highly anticipated games, could end up performing even better than its predecessor.
Serkan Toto, an independent consultant for video game companies said the OLED model of switches was good enough to squeeze 50% more from the consumers given how well the standard switch sold. Although there is no official share in the PlayStation division, it is a company that will monitor the sales performance of the OLED Switch as PlayStation 3, 4 and 5 have taken the traditional route of selling at a loss.
In the end, Nintendo must find new Switch owners before it gets the same fans who buy its consoles. The biggest killer of my continued attachment to the Switch and gaming is trying to fool me that if Nintendo buys me a Nintendo Switch OLED and thinks the players will like it, they won't get my opinion and they will ignore me and the millions of other loyal players who helped to make the Switch the success it is today