The reports suggest that two new Nintendo Switch models are on the way. Officially Nintendo did not consider the possibility, although she said she would not announce the new systems during E3. This was true, but a new report by The Wall Street Journal, posted this week during the E3 2019, reveals some new details that emerged in the new Switch models. In particular, the report states that Nintendo has decided to move the production of new consoles in Southeast Asia instead of China because of fears about the potential US tariffs on electronics made in China.
25% would affect video game consoles as well as smartphones and computers. In theory, this could lead to an increase in game console prices ̵
A game console is not historic where money is made in games. Often, systems are sold at a loss or with very thin margins, and profits instead come from software and services. If the 25% tariff enters into force for Switch consoles delivered to the United States, it would affect how much money Nintendo – and other companies – sell consoles. Nintendo is a deviation in this area, however, as the company maintains on Switch's first switch day in 2017 that makes money for every console sold .
If the 25% tariff comes into force, this may reduce Switch's profits, which is why Nintendo has chosen to move the console production off China.
According to the WSJ report, Nintendo has already moved the production of the existing Switch model, as well as two new rumors about Southeast Asia. As far as the new systems are concerned, it is said to have a similar form factor to the existing model, but they are characterized by better components and the other is expected to have a different type and lower characteristics that make it cheaper.
Nintendo declined to comment on the report when she turned to the WSJ.
It's unclear when Nintendo can announce the new Switch models if they're really real. In the absence of new hardware to discuss at its direct conference this week, Nintendo has made a series of software releases, including The Witcher 3 for Nintendo Switch and the sequel to the Zelda Legend: Breath of the Wild.
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