Nintendo is making plans to shift part of the production of its Switch console from China to Vietnam, according to a spokesperson from the company.
In a conversation with Reuters on Tuesday, Nintendo revealed that the shift is expected to happen this summer in a move to diversify risks. It claimed that this is not in a bid to avoid any potential tariffs imposed by the U.S. government on products imported from China. Nintendo has yet to comment further on its plans, nor propose a date beyond summer when it will be making the move.
Nintendo currently outsources nearly all of its Switch console production to Chinese manufacturers that work on a contract basis, so this will be a major change in procedure for the company.
The news comes after a round of heavy-hitters, including Nintendo, Microsoft and Sony, in the technology space released a joint statement opposing the proposed tariffs on Chinese goods. Additional companies that have come out in opposition against said taxes include Intel, HP, Dell, Kingston, Bose and Best Buy.
While Nintendo maintains that the tariffs aren't the reason for the shift, the monolithic video game company stated via the aforementioned joint statement that the tariffs would "significantly disrupt" their business and "add significant costs that would depress sales of video game consoles and the games and services that drive the profitability of this market segment."
With Nintendo reportedly looking to launch two new models of the Switch in the future, according to The Wall Street Journal, it's likely the company is looking to keep its options open when it comes to where it can manufacture its games and consoles.
Nintendo isn't alone when it comes to moving production around, as additional Japanese firms, such as photocopier manufacturer Ricoh and electronics manufacturer Sharp, are also looking to follow the same path. We also spoke extensively to CEO Charles Chiang about Taipei-headquartered MSI preparing for "the worst" in regards to tariffs.
In terms of the type of tech the tariffs could affect, the implications would be widespread, potentially including everything from laptops and tablets to monitors and, of course, video game consoles. For more, read our round-up on everything tech enthusiasts need to know about the tariffs.
