Nintendo has announced the release of its new gaming console, the Switch 2, which is expected to hit the market amid global trade tensions. This was reported by the Financial Times, writes UNN.
Details
The new console, which may feature a larger display and a next-generation game lineup, will be unveiled on April 2, the day Donald Trump is expected to announce new trade tariffs. This aspect could affect the starting price of the Switch 2 in the US, which is currently being discussed among analysts.
The original Switch revolutionized gaming when it was released in March 2017 as the world's first hybrid portable and home console. It propelled Nintendo's stock value to new heights, with over 150 million units sold by the end of 2024.
Now, the company hopes to convert this huge dedicated fan base into buyers of the more powerful Switch 2 console with a larger display and an essential next-generation game lineup.
However, in addition to technical innovations, a key part of the company's strategy is a significant shift in production from China to Southeast Asia, specifically to Vietnam and Cambodia, which allows it to circumvent US tariffs imposed by the Trump administration.
The build-up of new assembly capacity in Southeast Asia could be crucial to their efforts to ensure sufficient supply for the 2025 holiday season and, therefore, to the success of the Switch 2 this year.
According to informed sources and analysts who processed the data, hundreds of thousands of Switch 2 devices have been shipped from Vietnam to the company's facilities in the US since the beginning of the year.
David Gibson, an analyst at MST Financial, said: "Export data combined with finished product codes confirm that Nintendo shipped a finished version of the Switch 2 [from Vietnam] over five days in January, a total of 383,000 units, all of which were shipped to the US."
I suspect this happened to test the distribution system and preempt the risk of tariffs. I expect the numbers to increase significantly in February and March.
Nintendo is not alone in stockpiling in the US ahead of new tariffs; PlayStation manufacturer Sony is also building up inventory. But the Kyoto-based company is considered one of the most vulnerable to Trump's policies due to the upcoming launch of the Switch 2.
Analysts say that planned additional capacity at Nintendo's suppliers outside China will help mitigate trade war risks, as major contract manufacturers are expected to complete expansion work in Vietnam and Cambodia this year.
Whether Nintendo's bet pays off depends in part on how long Vietnam, in particular, can avoid Trump's tariffs. It has the third-largest trade surplus in the world with the US.
Some analysts predict that Nintendo's strategy will be to simply set a price and adapt it depending on possible tariffs, which they believe will be accepted by buyers given the high demand for the Switch 2.
Recall
Earlier, UNN wrote that the Ministers of China, South Korea, and Japan will meet in Seoul to discuss economic cooperation. According to reports, they are likely to discuss a free trade agreement after the leaders of the countries promised to accelerate relevant negotiations last May.