Key Takeaways
1. Nintendo has shifted a significant portion of Switch 2 production to Vietnam, with over 750,000 units shipped to the US in February.
2. Most consoles made in Vietnam are intended for the US market due to potential tariff increases in July.
3. Global production still relies on China, Taiwan, and Cambodia, but imports from Vietnam may help keep prices lower for US customers.
4. Manufacturing costs for the Switch 2 are estimated at around $400, which is higher than previous predictions.
5. Fan concerns about the Switch 2’s pricing and upcoming game releases may influence their decision to stick with the original Switch.
Previous rumors about the Switch 2 mentioned that Nintendo moved a lot of its console manufacturing to Vietnam. Now, Bloomberg brings more specific figures from customs data. A major assembler sent over 750,000 units from Vietnam to the United States in February. With a 90-day delay on Trump tariffs, gamers in the US are optimistic that pre-orders for the Switch 2 will kick off soon.
Console Production Focused on the US
Beginning in January, nearly all consoles made in Vietnam were destined for the US market. Since higher tariffs could come back in July, Nintendo plans to ship as many Switch 2 consoles from Vietnam to the US as they can. The company has postponed pre-orders for the Switch 2, leading to a backlog of unclaimed units. While Canada faced similar issues, fans in other nations, including the UK, are still able to reserve their consoles.
Global Production Landscape
Other regions still account for two-thirds of the Switch 2’s production. China, Taiwan, and Cambodia are expected to provide consoles for the rest of the globe. However, due to high Trump tariffs on China, imports from Vietnam could help keep prices lower for American customers when it comes to the Switch 2.
The Bloomberg report also featured information from stock analyst Robin Zhu. While 10% tariffs are still applied to products from Vietnam, Zhu thinks Nintendo can handle the extra costs. The analyst estimates that it costs the gaming titan about $400 to manufacture the console, which is higher than other predictions.
Fan Reactions and Future Pricing
Nintendo has faced criticism regarding the price of the Switch 2 and the cost of physical games like Mario Kart World. Any future price increases might push fans to stick with the original Switch. Upcoming games such as Metroid Prime 4: Beyond, which will launch on the original Switch, make the new system seem a bit less enticing. On the Kit & Krysta podcast, former Nintendo staffers didn’t rule out a price hike. However, they feel the company aims to avoid any further negative publicity.
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