As we all know, Nvidia makes the clever little chips that go inside the Nintendo Switch, and its alliance with the Kyoto veteran has proven to be a profitable one thus far. However, Nvidia's business goes beyond the Tegra line of silicon and includes cryptocurrency mining, AI, automobile tech, data centres and – of course – PC graphics cards. It's had a tough time in some of those areas in recent years, namely in cryptocurrency and the data centre business.
However, the company's latest fiscal report offered up better-than-expected first quarter results, and revenue guidance for the second quarter was also higher than expected. Nvidia is predicting revenue of $2.55 billion, which is better than the $2.53 billion that analysts were expecting. But what's the reason for this positive outlook?
Co-founder and CEO Jensen Huang had this to say, following the publication of the report:
NVIDIA is back on an upward trajectory. We've returned to growth in gaming, with nearly 100 new GeForce Max-Q laptops shipping. And NVIDIA RTX has gained broad industry support, making ray tracing the standard for next-generation gaming.
While Huang mentions the company's popular line of graphics cards, some industry analysts are reading between the lines and taking this as further confirmation that Nintendo is launching a new Switch SKU this year. Naturally, if one is coming then the contract between Nintendo and Nvidia will have been signed ages ago, and this could be the 'growth' Huang is referring to.
Analyst Harlan Sur said "we expect seasonal growth in gaming (augmented by ramp of 2nd gen Nintendo Switch) for the remainder of the year", while Christopher Rolland added that "guidance beat our expectations, helped in part by a strong return of Nintendo Switch sales as the Japanese company is expected to launch a cost-reduced version of the device."
Such comments add more weight to reports that a Switch Mini is inbound, although Nintendo is being typically tip-lipped and has yet to announce (or even hint at) a hardware launch in 2019.
[source markets.businessinsider.com]
Comments 62
Stop with the Rumours already. I'll believe there will be a Switch Mini, when it is officially announced.
I read between each single.line... I even checked my glasbowlw. Offering click-bait forecasts! Who's interested?
Pure speculation. Nintendo buying the chips does not mean a Switch Mini at all and could just mean more normal Switch consoles being produced.
NO!!! The Switch Pro is the answer for Nvida. Come on Switch Pro.
Damien, Nvidia needs no revival. Bad numbers are the result of the pump and dump of crypto. Nvidia's stock skyrocketed thanks to wild speculation of bitcoin/ (insert random word + COIN). Nvidia's stock is severely inflated by the sudden demand in (insert word + coin)crypto.
I do this for a living and am quite good at it.
Things not looking as bright (replace bright with ; artificial inflation) in this case is a good thing, its called a reset. And in addition to the above did you also account for the QT of (ECB +FED) instead of the QE we have been enjoying (stock market) since 2005?
Aren't they providing the chips for PS5? That's probably a big boost.
The switch is using old tech though the demand certainly helps.
@ZelthkingYoutube in fact, not really. They specifically told there would be no new hardware at E3. It could be before, after or never.
im ok with a mini but dont make an xl version
If history proves correct @jipiboily Nintendo does not consider revisions of Hardware as New Hardware.
@Rafke ah that's right! I get Nvidia and AMD mixed up sometimes haha
@BacklogBlues oh maybe.
Here's the news I was referring to: https://www.nintendolife.com/news/2019/04/nintendo_has_no_plans_to_announce_new_hardware_at_e3
Ah another "Nintendo already said it wouldn't happen but we are makeing an article on it anyways" article.
Any growth probably wouldn't be in the RTX cards. AMD's graphics cards are much cheaper and better value.
There is no Switch Mini, there wonˋt be a Switch Mini, a Switch Mini doesnˋt make sense in the slightest. I donˋt know why you and other publications are so insisting, to keep that dumb rumor alive.🙄
Errr. The Tegra business for the quarter and Y/Y was in the toilet. It is right there in their "Q1 highlights"
"Tegra Processor business revenue - which includes Automotive, SOC modules for gaming platforms, and embedded edge AI platforms - was down 55 percent from a year ago and down 12 percent sequentially. The year-on-year decrease primarily reflects a decline in shipments of SOC modules for gaming platforms"
If investors want a new Switch - it is not for "growth"... it is to stop the bleeding.
I do think we'll get a Switch portable this year, Pokémon kind of demands it, and they likely won't announce it until September - I think they only announced the 2DS about 2 weeks before launch and they like announcing holiday stuff like the Wii U WW HD bundle in September - but I don't see how it fits here. Nvidia may sell those chips, but I very much doubt Switch portable will have ray tracing. If anything Switch Pro might have that next year, but not the portable this year.
@Agramonte Fake news! 😉 jk
no thanks on the switch mini, but a switch 2.0 will be welcome. one with a better processor and graphics card. one with more internal storage. maybe one that takes more than one micro SD card. maybe one with a better type of VR support.
and why would we want a switch mini when we already have a 3DS, unless the new switch system will be locked to its docking station. maybe they have some great idea of where it may have some compatibility with DS/3DS games. (some game updates required so that the games will be single screen instead of dual screen.)
but who knows what ideas that Nintendo came up with? some of the features that are included in super mario maker 2 are great and make it a must buy for those who want to make there own super mario levels.
hopefully Nintendo will put these rumors to rest and start showing us some more details on the game we love. like more details on super mario maker 2.
So essentially Nvidia will release another graphics card, big woop. I'm tired of seeing articles on news blogs and YouTube pushing for a switch mini/pro when it doesn't make financial (or to me logical) sense yet since the switch is selling like hot cakes. And there are people like me who can't afford another $300+ system when they bought the switch even at launch.
All this just because he said the word "growth"? He could be talking about an N64 Mini for all we know.
@N64-ROX
i almost forgot about the possibility of a N64 mini. thanks for the reminder. too bad they said something about not having plans on making one. (with the hint that their decision may change.) remind me; what was the name of the guy who made the announcement. i feel bad that i forgot his name.
@stevenw45 Yes, Reggie became dead to me too when he wrote off the N64 mini.
(not really)
(because it's definitely happening)
“News”
But of course...
I'd rather have a Switch Pro or a Switch XL but I think I'm in the minority here.
Wonder if the release will tie in with Fire Emblem and have a limited edition.
@Kal_ No sir, many want the Switch console to evolve and take over the world!
@rjejr Crazy how that is everywhere these days 😅
Qualcomm/Adreno just running circles around them. Even RAZOR and ASUS went with a Snapdragon 845 SoC with Adreno 630 GPU.
@N64-ROX
thanks for reminding me of his name.
now to wait for the release of the N64 mini as well as a N64 controller adapter and an updated version of the GameCube controller adapter.
the controller adapter needs to be updated so that it includes a home button and a snapshot button. if we want to play our games with our favorite controller we shouldn't have to have a Nintendo switch controller synced to the system just so that we can have use of those buttons...
@GrailUK
I just got Wii U era fanboy nostalgia, holy hell! Go onto an old YouTube video and you'll laugh.
It was the best of times, it was the worst of times. We also had Pikmin 3 so fans were pretty content for the most part.
@Kal_
that reminds me are there any rumors going around about a possible pikmin game for the Nintendo switch?
@stevenw45
As far as I remember...No??
It's been confirmed in development (afaik, I don't follow Pikmin too closely) if anything there should be news this year or next year.
I'd rather have a switch Pro (faster) bigger screen, the new Tegra chip. More memory.
I would buy it day one. So yeah more money for both Nintendo and Nvidia. Match made in heaven
@Dellybelly
Is that why 2018 ended strong with Ps4 Pro and Xbox One X sales going up instead of down? Does that mean that nobody wants a Switch that is already small enough, to get smaller?
(Although realistically it would be more like a Vita Slim)
I don't care about a switch mini until it get's announced. Then again, I probobly won't care after, unless it looks legitimately useful.
Ugh I don't want hear anymore about the stupid Switch mini until Nintendo officially announces it.
More power is definitely more attractive when the whole point of the Switch is to take console experiences on the go and it can barely manage to do that. So many games undocked are just meh in terms of graphics but the more triple A games suffer from poor performance. Not even Panic Button can fix that.
Sure a undocked only Switch would sell like Japanese hotcakes(Hottokēki) but if it retained it's current specs right now it ain't selling anywhere else. In 2017 Switch owners preferred handheld over console usage. However even more recently the amount of docked only has risen to about half and half.
The only logical thing at this point is to look at the "2 Switch versions rumor". As it sounds like a Nintendo thing to do, and it would appease both sides. Those who want more power, and those who never touch the dock.
It's pretty obvious a new Switch revision is coming, given that Nvidia's Switch SOC production tanked during the last quarter to its lowest point ever
@Kal_
A handheld-only Switch is going to fly off shelves everywhere if it is priced appropriately.
@westman98
Yeah if it's free.
Jokes aside I have my doubts. 50/50 at this point.
@Kal_
Can't see why a Switch handheld would struggle in the west if the price is good.
The Switch already sells very well at its current $/€299 price tag. It'll do even better at ,say, $/€199, especially among kids who don't need their own home console and find the current $/€299 barrier to be too much.
I guess it will all come down to how much TV gaming matters to western Switch consumers and whether the handheld Switch is compatible with the current dock despite not being bundled with one.
@westman98
Never said it would struggle. Commerical sucess and critical success are very different things. That's why we get New Mario Bros games almost every year despite being the worst rated in the series.
@Kal_
"That's why we get New Mario Bros games almost every year despite being the worst rated in the series."
???
NSMB: 2006
NSMB Wii: 2009
NSMB 2: 2012
NSMBU: 2012
NSLU: 2013
NSMBU DX: 2019
Outside of 2012-2013 where 3 New Super Mario Bros titles were released within a 12-14 month period (to this day, I have no idea why Nintendo thought doing that was a good idea), the series isn't even close to being annualized.
And I doubt Nintendo cares about the "critical success" of a hardware revision, especially when that revision will remove a key selling point of the current hardware.
Keyword: almost
Why is everybody acting like a "Switch Mini" is a done deal when all we have are unfounded rumors and speculation?
@MrBlacky probably because stock markets addicts who see the Switch as a popular console thus keep hyping themselves up about how it could bring even more/biggerer/all-the stock market profits because they don't know the market and don't realize it's -already- breaking all type of records(more units sold in two years in japan than five years of PS4 in japan) even as they basically asks of nintendo to do even better than these solid to records-breaking performances.
But since all they see is "growth"(because "growth" is what grows their stock value) they see any slowing of that growth(not even a stop, but just slowing which in might just mean that nintendo achieved it's stable but still solid cruise speed for sales) as sign of doom but clearly it's a popular product so it "needs" additional further growth of sales exponentially because "high but stable" is a loss in their eyes which think only "high and still rising more and more" disregarding the reality of the market/consumers/etc.
Therefore if the pace of new sales "plateau"... no matter how high the plateau of monthly sales is doesn't matter to them because it's not growing. It could have been one million units per month they might still have ranted it's doomed because it would have been months not growing above that million.
Therefore since they can't fathom people being okay with "stable but solid numbers of units sold and selling" instead of "growing and growing" they convinces themselves that clearly Nintendo must have a plan to release more new products to bring more new units sold growth monthly.
Thus they scrape for any signs of a "master plan" that could clearly show the pace of units sold will continue growing and growing, and with it their stocks actions, until it becomes this self-reinforcing hype that clearly a new model will be on the way to break ALL the records and grow sales exponentially.
Which is why you see stock value jump up from this speculation because it's just that, this self-reinforcing hype that clearly nintendo has "something" up iit's sleeve to grow it's solid sales even further.
And which is likely why you see nintendo now increasingly come up to repeat they have no plans for new hardware even as they likely indeed don't.... because they know the dangers of stocks rising up as they are by the self-reinforcing hype of stocks-addicts who've become convinced by their own unfounded speculative hype and Nintendo knows exactly how that's going to go once and if those stocks-addicts realizes their unfounded hype was exactly just that...
Unfounded.
Because Nintendo knows they'll still get the blame(and stock value impact) even if they went out of their way to try rp deflate the rumors because the analysts spreading that self- reinforcing hype certainly are never going to take the blame for the hype they started in the first place.
Basically it reminds me all about that one quote I once heard about how you should forget taking a class in economics if the stock market is what you had in mind and instead take a class in psychology because ultimately that's all it is about with the focus on "confidence" when it comes to stock values and it's ebb and flow.
@Agramonte "Qualcomm/Adreno just running circles around them. Even RAZOR and ASUS went with a Snapdragon 845 SoC with Adreno 630 GPU."
That's Mobile device they don't compare on par with gaming chipsets or Game selections. Your really stretching it here a portable Switch is gaming performance and phone is nothing close in gaming quality.
I still don't see the whole switch mini switch pro thing happening the way many people think it will (handheld only vs dock only) - a switch that doesn't both do handheld and docked is not a switch.
I also don't see why this article tries so hard to put words into the mouths of people. I mean seriously, wait it out. There's nothing even insinuating a switch mini/pro/new/2.0 blabla.
And even if there is, I doubt we'll see it around E3. My guess is a pure software-based focus.
@Kal_ I don't think 4 and 3/4 games in 13 years constitutes "almost" annually.
Are you guys seriously hung up on wording?
Let me rephrase then.
That's why we get New Mario Bros games semi-frequently despite being the worst rated in the series. At least the 3D games diversified.
I wouldn't count the DS version. And the Switch version was a given, with the Wii U being the Wii U. If you wanted me to say annualized you can look elsewhere.
A Switch Mini makes absolutely no sense. Why the f*** would the switch become a portable only with no removable joy cons (per rumors). It would remove the whole "SWITCH" thing, not to mention a dumbed down switch model is stupid. A less powerful system? Why? Some of the games on the Switch already struggle. An enhanced Switch Pro makes more sense than a mini POS.
I’m still calling BS on a Switch Mini, and definitely not in 2019. If I’m wrong, I’ll play nothing but Vroom in the Night Sky for an entire month
@Zuhan You wrote the comment so that I didn’t have to. Cheers
@Thermoclorn your welcome partner
Laces fingers We'll see, I suppose. Speculators may well be onto something, but this is definitely conjecture until we have more puzzle pieces.
@Bondi_Surfer
Day 27 of Vroom in the Night Sky:
My Hot Pocket started talking to me. But that was pretty normal compared to when some people broke into my house. They told me to stop playing this shovelware and handed me a copy of Hollow Knight(When it releases), I didn't know what good games were anymore. The I only thing I know is Vroom in the Night Sky.
They also tripped on my pee jars on the way in, that was pretty rude of them.
I think a Switch pro could come in 2020.
@SwitchForce Tegra SOC was their mobile solution. I had one of their first tegra phones in the Atrix on AT&T.
Best success they ever had was with Tegra 3, when they won 4 mobile designs and OUYA. Tegra K1 was a fiasco and had 1 tablet come out.
By the time X1 came out in 2015 they had not won a single phone order in 3 years. So they double down on Tablets and the new DRIVE initiative.
Nobody bought it for tablets, but they won to supply the Switch. So now you have Cars and Handhelds.
TESLA dropped Nvidia in 2018, so they really need Nintendo.
And yes, the 845 beats it (and with less heat). Not comparing Switch VS Mobile. We talking about the SOC in the devices.
3DMark Sling Shot Extreme Unlimited
Snapdragon 845 - 5,102
NVIDIA Tegra X1 - 4,132
GeekBench
Snapdragon 845 - 2,405
NVIDIA Tegra X1 - 1,510
A new version of the Switch will absolutely happen at some point. These rumours are pointless.
The switch mini needs to be 3ds sized or it won't be mini enough for me!
Compared to all the other hardware Nvidia is involved with, their intake of revenue from Switch sales has got to be too tiny of a fraction to be meaningful in that regard.
I can't believe a word of this. Patcher hasn't spoken yet.
@Dellybelly "What is a Switch hardwarevise but a mobile phone or tablet with dedicated controls?"
This is laughable and tickle me pink. NOT. What a koolaid drinker we are. Try as fan tricks are they just don't add up to much.
@Dellybelly A True TROLL... TROLL alert....
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