Benzinga | Mar 23, 2021 08:43AM EDT

Nintendo Targets Upgraded Cost-Effective Nvidia Graphics Chip In 2021 Switch

Nintendo Co Ltd (OTC: NTDOY) (OTC: NTDOF) is looking forward to an upgraded NVIDIA Corp (NASDAQ: NVDA) chip with better graphics and processing for a new Switch model planned for the year-end shopping season, Bloomberg reports.

* The new Switch iteration would support Nvidia's AI-enabled Deep Learning Super Sampling (DLSS) technology for the efficient delivery of higher-fidelity graphics. The chipset would enable the console set for an OLED display upgrade to reproduce game visuals at 4K quality when plugged into a TV.

* The chipset would also lead to a better CPU and increased memory. DLSS support would require new code to be added to games, and it would be primarily used for graphic improvement on upcoming titles.

* Bloomberg previously reported that the new Switch was likely to include a 7-inch OLED screen from Samsung Display Co and couple the console's release with plenty of new games.

* Nintendo' announced a new partnership with Niantic Inc. on augmented-reality smartphone apps, set to begin with a Pikmin app in 2021.

* Bloomberg predicted strong demand for the new Switch despite a $100 price hike compared to the current model price of $299.

* DLSS was launched as an image upscaling feature in 2018 and remained exclusive to Nvidia graphics cards. The new Switch was still expected to lag its pricier rivals' overall performance capabilities like Sony Corp (NYSE: SNE) and Microsoft Corp (NASDAQ: MSFT) despite adopting more upgraded and cheaper technology to the rivals.

* Price action: NVDA shares traded lower by 0.18% at $526.5 in the premarket session on the last check Tuesday.