Chip maker Qualcomm just might be getting ready to become a videogame player.
With gaming more popular than ever because of the Covid-19 lockdowns, and next-generation systems in short supply, Qualcomm (ticker: QCOM) is reportedly working on its own console.
Qualcomm’s system is an Android-powered mobile one that resembles the wildly popularNintendo(NTDOY) Switch, according tothe blog Android Police. The console will use a Qualcomm chip, and includes many of the same functions as the Switch, such as detachable gamepads, and a way to connect it to an external TV or monitor. The system is expected to launch in early 2022 for around $300, the blog reports.
Qualcomm didn’t immediately return a request for comment. Android Police noted the project could be scrapped.
The decision to make a consumer gadget would be a departure from Qualcomm’s typical businesses. The company is known for its mobile chips that power phones andsemiconductors used for wireless networking. Beyond selling chips, Qualcomm generates a significant amount of its annual sales from licensing its technology to other companies.
The market for videogame devices is big. Nintendo’s Switch console has sold just over 80 million units since its launch in 2017, according to the website VGChartz. The last generation of consoles produced by Sony(SNE) and Microsoft(MSFT) sold more than 150 million units combined.
There is a rich ecosystem of games for Android systems, too, which includesFortnite, andCall of Duty: Mobile. But the strength of Nintendo’s Switch is, at least in part, because of the rich vault of franchises that the company owns and the critical success of some of the early titles for the system, such asThe Legend of Zelda: Breath of the Wild.
Qualcomm stock fell 4% to close at $127.18 during regular trading Wednesday. Shares have gained 99% in the past year, as the S&P 500 index rose 63%.
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