Samsung Display will start mass production
of 7-inch, 720p-resolution OLED panels as early as June with an initial monthly
target of just under a million units, said the people, who asked not to be
identified discussing internal matters. The displays are slated for shipment to
assemblers around July, the people said. Representatives for Nintendo and
Samsung Display declined to comment.
Nintendo seeks to sustain a Switch lineup
that continues to sell well against the Xbox and PlayStation, thanks to
pandemic-era breakout hits like Animal Crossing and a chip crunch that's
plagued supply of rival devices. But the gadget is now into its fifth year,
while Microsoft and Sony both have new and more powerful machines in the
market.
The gaming community has speculated online
about the introduction of an OLED or organic light-emitting diode screen, but
Nintendo has stayed mum and President Shuntaro Furukawa said in February his
company has no plans to announce a new Switch “anytime soon.” Samsung's
involvement is the strongest indication that Nintendo is serious about updating
the console, and on a large scale.
“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
display consultancy DSCC.
In February, Nintendo raised its annual
forecasts after the Switch helped the company to its best quarterly earnings
since 2008. The games maker hopes to sustain that run in 2021 despite
stiffening competition and an ebbing pandemic.
Nintendo decided to go with rigid OLED
panels for the new model, the people said, a cheaper but less flexible
alternative to the type commonly used for high-end smartphones. The latest
model will also come with 4K ultra-high definition graphics when paired with
TVs, they said. That could intensify a longstanding complaint of developers,
who have struggled with the difference in resolution between handheld and TV
modes and now face a bigger gap between the two.
The deal benefits Samsung Display because
market prices for so-called rigid OLED panels have been falling due to excess
supply. Winning a customer like Nintendo also helps the Korean giant - an
affiliate of Samsung Electronics - firm up production plans. Nintendo in turn
secures a valuable partner and supplier at a time semiconductor shortages are
squeezing the supply of display-related components.
The new display's resolution mirrors the
current Switch and Switch Lite but is an upgrade from the Switch's 6.2-inch and
Lite's 5.5-inch size. If the console's housing remains unchanged, the new
Switch is likely to sport a thinner bezel.
© Bloomberg LP
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