Switch 2 Will Not Be Made In China
Nintendo has made a significant strategic change for its next-generation console, the Switch 2. The company has strengthened its supply chain for the US market by shifting its production and shipping processes from China to Vietnam. The move was made in order to avoid US trade tariffs and ease inventory management. Nintendo plans to ship millions of consoles to the US before the Switch 2’s launch on June 5, 2025.
Vietnam Strategy for Switch 2 Production
Nintendo aims to speed up shipments to the US by increasing its production activities in Vietnam. According to Bloomberg, almost all of the Switch 2 consoles manufactured in Vietnam by Hosiden Corp. are being shipped to the US. Shipments from Vietnam in 2024 have increased significantly compared to the previous six months.
One of the biggest reasons behind this change is the high tariffs that the US has imposed on imports from China. Previously, these tariffs, which went up to 125%, caused Nintendo to shift production outside of China. Vietnam has become an important production center for Nintendo in the process.
The additional 46% tariffs that the US imposed on Vietnam had briefly put Nintendo’s plans in jeopardy. However, these tariffs were suspended for 90 days. The company used this period as an opportunity and started shipping a large number of Switch 2 consoles to the US. Nintendo of America President Doug Bowser announced that many consoles have already arrived in the US.
Nintendo has postponed Switch 2 pre-orders due to the tariffs and uncertainty in market conditions. The company has moved the pre-order period, which was scheduled to start on April 9, 2025, to a later date in order to evaluate the potential impact of the tariffs. However, the Switch 2’s release date of June 5 has not changed.
This strategic move by Nintendo increases competition in the console market and makes logistics and production processes more flexible. Switch 2 attracts attention with its new features and $449.99 price tag. Gamers in the US are eagerly waiting for this next-generation console. This change in Nintendo’s production and supply chain is an indication of the company’s efforts to maintain its power in the global market.
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