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Nvidia may make over $300 million a year from Nintendo Switch

Analysts have been keeping an eye on Nvidia.

Nvidia has long been rumoured as the ones behind the hardware for what was known as the Nintendo NX, and now that the Switch has been officially unveiled, these rumours have been confirmed - Nvidia are providing a custom Tegra processor, along with some other hardware and software solutions, for the Switch.

Mark Lipacis of Jefferies & Co. gave his two cents on the Nintendo Switch and Nvidia yesterday, saying this about the partnership:

"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."

There are two things that can be taken from this statement. The first is that the Switch will likely be a much stronger competitor to the PS4 and Xbox One, and will potentially sell more than the Wii U's abysmal 4m in the first year. The other thing we've learned is that, assuming the Switch sells well enough, Nvidia will be making between $200m and $320m US dollars in profits thanks to their partnership with Nintendo.

The Nintendo Switch is shaping up to be an interesting console, but how well it will perform is still up in the air, and only analysts can say what will happen. You can read the full article with Lipacis' analysis here. Do you think it will compete with the PlayStation and Xbox?

Nvidia may make over 0 million a year from Nintendo Switch

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