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Jefferies & Co.’s Mark Lipacis Says The Nintendo Switch Could Be Worth As Much As $320 Million A Year For NVIDIA

According to Jefferies & Co.’s Mark Lipacis, NVIDIA has a big opportunity with finances because of the Nintendo Switch. He says that “we estimate this to be a $200-$320m annual opportunity for NVDA near term. While the incremental dollars would likely be margin dilutive, we view upside potential to our sales and EPS estimates of $0.11-0.16 in 2017″. He explained his findings in more detail, saying that “it appears that the Switch will be powered by an NVDA Tegra processor. NVDA created new gaming APIs to take full advantage of the custom software on the device. NVDA stated that gameplay is further enhanced by hardware-accelerated video playback and custom software for audio effects and rendering. We suspect the processing performance will be lower than the Sony PlayStation or the Microsoft Xbox. NVDA’s expertise in providing high-performance graphics should help boost gameplay as well as demand for the hybrid console. While Nintendo has been largely uncompetitive against the Sony PlayStation and Microsoft Xbox, we think the Switch has the potential to see more shipments. There are very few details on the price point, but we think the Wii and Wii U case studies are instructive. In the first 12 months of launch, Wii shipped 13m units and the Wii U shipped 4m units. Assuming 5-8 million units at a $40 ASP for Tegra translates to $200-320m in revenues and $0.11-0.16 in EPS.”


30 thoughts on “Jefferies & Co.’s Mark Lipacis Says The Nintendo Switch Could Be Worth As Much As $320 Million A Year For NVIDIA”

      1. It likely costs about $200 to make, they’re not gonna sell it for $200. $250 is the bare minimum.

        Also I think they’re just assuming a price for the Tegra chip ($40) times the amount of units they think it might sell (5-8 million) and getting $200-320 million.


        the profit will be the games they can break even at £$ 200 maybe $£ 250

  1. you know I think the price for 200$ is not bad for them. Nintendo said they did wanted the console cheap to be successful. if they sold the console cheap for under 200$ or 239$.99 then Nintendo can make more money and get the switch up in there markets. I wonder how much they can sell the switch once the release date begins next year.

  2. Dont fight and scratch my little bear. You’ll soon need bigger underwear. Hehehehe

    Im sorry I was a little off topic just Gruntilda the witch but back on the subject back to the Nintendo Switch.

    1. First person I agree with. So many people want or expect the Switch to be super cheap but if the tech is current then it can’t be too cheap. I’m hoping the power of the system while it’s docked is at least bumped up 25% or so but if the dock does nothing then I can see the system having a hard time selling. Seems like a real waste of money to make a dock that serves no purpose so I’m going to stay optimistic and hope the dock does more than what Nintendo has shown so far. $350-$400 or so would be good if it’s a strong system on par with xbox1 (no S) or ps4 (not pro). The hybrid functionality adds value as long as the portable portion has decent battery life.

      1. They said the following to IGN:
        “The dock is not the main console unit of Nintendo Switch. The main unit of Nintendo Switch is the unit that has the LCD screen, which the two Joy-Con controllers can be attached to and detached from. The main function of the Nintendo Switch Dock is to provide an output to the TV, as well as charging and providing power to the system.”

        So it seems that essentially, it’s a handheld that can be plugged to the TV.

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