Nintendo To Upgrade Switch Consoles With Larger Samsung OLED Displays In Time For Holidays: Report

Nintendo Co. Ltd NTDOY is planning to reveal a Switch console with a larger Samsung OLED display in 2021 in the hopes the move would boost holiday sales, Bloomberg reported Wednesday.

What Happened: Samsung will begin mass production of the 7-inch, 720p-resolution OLED panels as early as June with a monthly target of almost a million units, people familiar with the matter told Bloomberg.

The displays are reportedly due to be shipped to assemblers near July. 

“The OLED panel will consume less battery, offer higher contrast and possibly faster response time when compared to the Switch’s current liquid-crystal display,” said Yoshio Tamura, co-founder of DSCC, a display consultancy, according to Bloomberg.

Why It Matters: Nintendo will keep pitching its five-year-old Switch console against Sony Corporation SNE and Microsoft Corporation’s MSFT latest PlayStation and Xbox devices, noted Bloomberg.

Samsung stepping in to make OLED displays for the Switch is reportedly an indicator that the Japanese company is serious about updating the console and doing so at scale.

The Kobe-based gaming firm updated the firmware of the Switch in December allowing users the ability to transfer screenshots and videos from their device to smartphones or PC.

Robust sales of the Switch console were noted in Asia and Australia, as per Nintendo’s financial report spanning nine months ended FY 21. 

Nintendo has raised Switch sales outlook from 24 million units to 26.5 million units and software outlook from 170 million units to 205 million units. 

Price Action: Nintendo OTC shares closed 3.34% lower at $72.89 on Wednesday.

Benzinga’s Take: Shortages of PlayStation 5 and Xbox consoles since their launch have given Nintendo’s console a sales boost. It would be interesting to see the sales trajectory once the latest devices from Sony and Microsoft become more widely available. An OLED screen could keep the Switch relevant through this year’s holiday season.