Two new Nintendo Switch models will be released soon based on previous reports. However, Nintendo has not confirmed the 2019 launch for these new versions, leaving the official announcement out of E3. Keeping a close eye on the news, we did pick up on a Wall Street Journal report that revealed possible rumors about the new Nintendo Switch consoles. Manufacturing has been reported to take place in SE Asia for the new Switch models, making China losing out on the contract.
This may have resulted due to worsening trade relations between the US and China, fearing rising tariffs for Chinese produced electronics. With Donald Trump import tax that is currently on the table, this would severely hinder business concerning gaming consoles as well as other electronics like smartphones and computers. The decision is forcing the companies involved to slash profits or pass down the increased cost to customers instead.
China’s Commerce Minister made the following statements in response: “There is a view in the US that so long as the US keeps increasing tariffs, China will back down. They don’t know the history and culture of China. The US should not underestimate China’s resolve and will.”
New Nintendo Switch Consoles Details Revealed In A New Report
Software easily beats hardware when it comes to sales and profits, with gaming consoles bearing the brunt of this inequality. Consoles are often times being recorded as selling their products with slim profit margins or even losing money on each unit sold. There would be no sense in worrying for the tech producing companies as they usually boost their profits with the passing of time. A 25 percent tariff would hinder those profits, however.
So a possible 25 percent tariff would hinder Nintendo and other tech companies to the point where producing their electronics in China and shipping them to the US for sale would be made redundant. Despite this, Nintendo has always maintained that the company has made money on each sold console since the Switch was released in 2017.
As for the details on the next Nintendo Switch consoles, the report suggests that we’ll receive an improved version of the current Nintendo Switch, but with enhanced performance, and another variant that would be smaller and cheaper.
Dorothy has been a journalist for ten years and has been working with the Tech News Watch staff since the beginning of the news site. Her main contribution to Tech News Watch are mobile, IT and science news, with a focus on software updates and great outer space discoveries.