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Nintendo to shift some Switch console production out of China

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Nintendo is considering partially relocating the production of its Nintendo Switch video game console in China to Vietnam this summer, officials said Tuesday. Nintendo apparently aims to diversify business risks amid lingering concerns that the United States may further expand its tariffs on Chinese products to include game consoles, the officials said.



Nintendo outsources the production of the Switch console mainly to electronics manufacturing service providers. Almost all of the consoles are made in China at present.
Nintendo has been considering shifting its Switch production for a few years. Precautions against possible additional US tariffs are not the only reason for the envisaged relocation, a public relations official said.
The company is expected to keep its global Switch sales target for fiscal 2019 from April unchanged at 18 million units.
The proposed fourth round of additional US tariffs against China includes game consoles.
The United States stopped short of implementing them when US President Donald Trump and Chinese President Xi Jinping agreed to a trade war truce in their talks late last month.

Published : July 10, 2019

By : The Yomiuri Shimbun Asia News Network