Nintendo Shifts Switch 2 Production to Vietnam Amid Trade War Fears:

While Nintendo prepares to launch the eagerly awaited Switch 2 console, they're also dealing with a global trade conflict. As US tariffs come into play, Nintendo has been reallocating its production towards Vietnam and Cambodia, according to a report by The Financial Times.

The Kyoto-based company has been reorganising its supply chains since the beginning of the Trump administration, and now it is believed that more than half of Nintendo's shipments bound for the US are manufactured in Vietnam. Analysts also claim that because Nintendo is trying to build up inventory in advance of the tariff changes, hundreds of thousands of Switch 2 units have already been shipped from Vietnam to the US.

Originally released back in 2017, the Standard Switch console, alongside other gaming products offered by the company, managed to become a market success with highest sales of over 150 million units sold. With the powerful revised Switch 2 console, Nintendo sets its aim on greater sales and boosting previous company growth, Along with this growth in sales, Nintendo plans a Switch 2 launch with a modern larger screen console. Pricing for this console, however, still raises concerns. Many experts estimate tariffs on imports from Vietnam will set the price for the Switch 2 at a hefty $399, which seems unusually high.

Regardless of skepticism, this year alone, Nintendo's stock value has seen a sharp increase of 25%. The expansion of the company's supply chain to Vietnam and Cambodia seems to be paying off on Nintendo's bets. The only concern that remains is how long will these countries manage to dodge becoming the target for a trade war. Vietnam seems to serve as a temporary Mario home for now, at least.