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Thursday, July 15, 2021

After Bloomberg Was Exposed for Nintendo Switch FAKE NEWS, They're Publishing Hit Pieces

By LUDWIG VON KOOPA - Unfortunately, many other media outlets don't have the capacity to learn from mistakes, so they're parroting the hit piece.

I hope everyone didn't already forget that it was news outlet Bloomberg that published the FAKE NEWS that spread to a massive range of other media outlets that Nintendo would announce a significant Nintendo Switch hardware revision at or before E3 2021. No such announcement occurred. Finally, weeks after E3 2021 ended, Nintendo did announce a Nintendo Switch hardware revision: the Nintendo Switch (OLED model). However, the Bloomberg report and the other media reports made many claims about what the hardware revision was supposed to be, and the (OLED model) did not match their “journalism.” Clearly, their anonymous sources and “insiders” were very wrong.

KoopaTV called for accountability for those conducting journalism about the videogame industry to re-evaluate how they're doing things, given how much they were misleading not just gamers, but also big economic players. Remember, the FAKE NEWS wasn't just among niche gaming websites—some of the most mainstream business publications, like Bloomberg, were reporting on this. Somehow, the fact that Bloomberg's name was behind the false rumours made them seem much more credible. It's like everyone forgot what a widely reviled failure Bloomberg's founder and owner is like.

Unfortunately, it didn't take very long after the Nintendo Switch (OLED model) was announced—the very existence of which is a permanent and obvious black mark on Bloomberg's journalistic integrity  (note that Bloomberg's four values are “Diversity & Inclusion”, “Innovation”, “Philanthropy”, and “Sustainability”. There's nothing about integrity, telling the truth, or even accuracy)—for Bloomberg to lash out against Nintendo with a hit piece.

The gist of their article is that, according to “estimates” from “analysts” (nothing is confirmed; it's a guy's guess... the same people who guessed and reported as truth that a Nintendo Switch Pro would exist), the Nintendo Switch (OLED model) costs Nintendo an additional $10 to produce than the regular Nintendo Switch—and it's priced $50 more than the regular Nintendo Switch. (Their analysis only looks at the price of acquiring parts, not the many other costs that goes into setting up production lines, research and development, marketing, etc.) Therefore, Nintendo is pocketing $40 in profit per Switch (OLED model), which is implied to be bad and horrible and mean to Nintendo consumers. (It's also implied that Bloomberg is sticking with its claim that the regular Nintendo Switch will be quickly replaced by the (OLED model) as the new standard Switch sold, effectively increasing the profit margin for every new Switch sold.)

Nintendo Switch (OLED Model) 7-inch screen Skyward Sword The Legend of Zelda
Link may be falling, but there's no reason for Nintendo's profits to go down with him.

Here's where you gotta read between the lines to really know what Bloomberg's point is getting at. The way supply and demand works is that if there is a lot of shortages of your product (in this case, for demand reasons) and scalpers are reselling what is available for a lot higher, that means you underpriced your product. In a world where consumers don't feel outrage, a company could just raise the price of the product when they find out they priced it very wrong. But that's not the world you live in. Basically, if you follow Bloomberg's line of thinking here (as communicated by hand-picked analysts), Nintendo did such a flimsy hardware revision (and Bloomberg is definitely taking the view that it's an unworthy revision) because they did an oopsie in pricing the Switch at $300 when it should've been higher all along, so the (OLED Model) is an attempt at a do-over without fully committing to a bigger hardware revision, the likes of which Bloomberg was spreading FAKE NEWS about for years.

So how do other news outlets take Bloomberg's “news” hit piece? TechRadar says: “Nintendo Switch OLED reportedly costs Nintendo $10 more to make... but costs you $50 more to buy”. That's an incredibly nasty headline. Then they still think there's a Nintendo Switch Pro coming. PCMag, fully believing Bloomberg, believes “Nintendo's OLED Switch Is $50 More Expensive, Only Costs $10 More to Make”. And there's others like that, especially articles that just take Bloomberg's hit piece and rewrite it to signal boost it to their audience. They want you to feel like you're being screwed and generate outrage (and they're banking on you not being very good at micro-economics) for clicks and ad revenue. The truth is that if you as a customer don't feel like it's worth it, you could just not buy it! They're acting like Nintendo is stealing $40 from your wallet or purse.

It's obvious that Bloomberg is making these hit pieces to make people frown at Nintendo for revenge for Nintendo blowing up their FAKE NEWS. (But that was always going to inevitably happen when you report on fake information...) It's not obvious why other media outlets are joining in, or why anyone is still unironically sourcing Bloomberg. Maybe they also want revenge. Maybe they've always hated Nintendo and want their readers to resent the company. Maybe they're just stupid. Possibly all of the above!

Ludwig won't buy the Nintendo Switch (OLED model) because he mostly plays the console in docked mode, so there's no point in buying a new console unless his old one breaks or something. He's happy about the idea of Nintendo being more profitable for every console sold, since it helps Nintendo accumulate more wealth, which they can choose to spend on potentially risky (and non-mainstream) projects that the Koopaling may find very enjoyable that they wouldn't otherwise do if every game had to be a blockbuster hit or else the company would fall apart. All that said, he's not sure who's going to buy the Nintendo Switch (OLED model), but he does know some people who never bought a Switch because they believed Bloomberg's FAKE NEWS about an upgraded model. ...And they still believe it, because so many media outlets are clinging to the idea that it makes it seem like it'll happen, and soon.

It's really fun to compare how Bloomberg treated the Nintendo Switch (OLED model) versus the Steam Deck.
Nintendo is NOT happy about Bloomberg's hit piece, taking a rare step and directly telling the public that it's incorrect information.
So-called Bloomberg “journalist” Takashi Mochizuki continues to publish inaccurate articles to scare the markets about the Nintendo Switch (that a 4K version may be coming), which Nintendo again denied.
Nintendo very specifically told investors and analysts that the (OLED model) has a LOWER profit margin than the regular Switch.

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