We know from previous reports that two new Nintendo Switch models could be released later this year. Officially, Nintendo said he would not release a new system during E3, but did not mention the possibility. Although this has proved to be true, a new report from The Wall Street Journal, released this week at E3 2019, reveals some new things about this rumored new Switch model. According to the report, Nintendo decided to move its new console manufacturing to Southeast Asia instead of China. This is a result of concerns about potential US tariffs on electronic products manufactured in China.
As we have previously reported, President Trump's proposed 25% rate of import tax impacts not only smartphones, computers, but also video game consoles. In theory, this can lead to price increases for game consoles. This is because consumers pay for the game console from Microsoft and Sony as well as from Nintendo. The alternative is to absorb the cost itself.
Game consoles are historically not where money comes from in the gaming business. Often systems are sold with loss or very little margin, instead they benefit from software and services.
For switch consoles shipped to the United States, if 25% duty is applied, Nintendo or other companies must decide how much to spend on console sales. However, Nintendo was more of an expert in this field, since it was maintained on the first day of switch sales in 2017. Earn money from each console sold..
If a tariff rate of 25% is applied, this could lower the profit profile of the switch, which may be the reason why Nintendo decided to produce products outside of China.
According to WSJ reports, Nintendo has already moved production of its existing Switch model to Southeast Asia, as well as two new familiar products. The new system has a similar form factor to the existing one, but has better components, and the other models are expected to have different appearances and lower specifications that are less expensive. The system is known to be in production and may soon be released, the WSJ said.
Nintendo refused to comment on the report when the WSJ approached.
Whether or not Nintendo will actually announce the new Switch model is unclear. Since there is no new hardware to discuss at this week's conference, Nintendo has released a series of software including a sequel to Witcher 3 for Nintendo Switch and Zelda: Breath of the Wild.
Nintendo has a long history of providing modified models of game hardware. Especially on the handheld side. The renowned new system is not a new generation of switch hardware, but it has already improved or refined the functionality of products already on the market.
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