nintendo-switchLast week after what felt like forever, Nintendo finally took the wraps off the Nintendo Switch console. Not much is known about the console at the moment in terms of specs, features, games, and so on, but if there is at least one hardware component that has been confirmed, it would be that NVIDIA will be the one behind the processor on the console.

This is great news for the company, so much so that according to Jefferies & Co.’s Mark Lipacis, he believes that NVIDIA stands to make a whopping $320 million a year from the Nintendo Switch alone. This is based on how much consoles like the Wii and Wii U cost, as well as how many units they think Nintendo could ship for the Switch.

Lipacis writes, “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.”

Of course this is just the prediction of one analyst and it is probably too early and almost impossible to tell how well the console will be received. So far the general public seems to be excited and curious about it, but Nintendo’s investors are less so, causing the company’s stock price to drop by 6%, but in any case we’ll have to wait until March 2017 which is when the console will be released.

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