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Nintendo will spend an estimated $10 more per unit building the OLED Switch

That modest increase on the production line combined with a rather notable price hike could see Nintendo boost its (already healthy) profit margins.

Nintendo's shiny new Switch OLED Model will retail for $349 when it hits shelves later this year, meaning it'll cost around $50 more than the original Switch and a whole $150 more than the handheld-only Switch Lite. 

According to Bloomberg, that price tag has been slapped on the upgraded machine despite it only costing Nintendo "around $10 more per unit" to manufacture.

Breaking down those estimated manufacturing costs, research firm DSCC told Bloomberg the new 7-inch OLED display would cost Nintendo an extra $3 to $5 per unit. It went on to note that adding more internal storage would represent another $3.50 increase, while the redesigned console stand and addition of a LAN port would bump production costs up by a "few more dollars." 

That modest increase on the production line combined with a rather notable price hike on the shop floor could see Nintendo boost its (already healthy) profit margins, with the Japanese company reporting annual profits of $4.4 billion last year -- a year-on-year increase of 85.7 percent. 

Of course, consumers would still need to get behind the OLED model for that to happen, and while some folks expressed disappointment at the lack of other improvements like 4K support and performance upgrades, it's worth remembering that 20 percent of Switch purchases during the last fiscal year were made by households that already owned one.

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