The Wall Street Journal published a report this week during the E3 2019 showing some new details about rumored new Nintendo models. In particular, the report states that Nintendo has decided to shift the production of new consoles in Southeast Asia rather than China on concerns about potential US tariffs on electronics manufactured in China.
25 percent covers video game consoles, as well as smartphones and computers. In theory, this can lead to price increases on game consoles – from Nintendo, as well as by Microsoft and Sony – while companies pass the cost to consumers.
The game consoles are not history where money is made in business games. Often, systems are sold at a loss, with revenues coming from software and services.
If the 25 percent tariff would be effective for the transfer of consoles sent to the United States, which would affect how much money Nintendo ̵
If the 25 percent tariff is in effect, which may be severed in the profit profile of the Switch, which is likely why Nintendo was elected to move the production of the console out of China.
According to the WSJ report, Nintendo has shifted production of the existing Switch model, as well as two newly rumored, in Southeast Asia. Regarding new systems, one is told to have the same form factor in the existing model but features better components, along with other expectations of having different looks and lower specs making it cheaper.
Nintendo declined to comment on the report when approached by WSJ.
It's unclear when Nintendo can express the new Switch model, if they are indeed true. The company said before E3 that it did not reveal new systems during the E3. Instead, Nintendo made a series of software announcements, including The Witcher 3 for the Nintendo Switch and a sequel to The Legend of Zelda: Wild Breath.
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