FAST FIVE: Nintendo Reportedly Moved Switch Production Out Of China Over Trump's Tariff Threats

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[…] Kyoto-based Nintendo has traditionally relied on the Chinese factories of contract assembly companies to make its videogame hardware.

Since Videogame console makers tend to sell their devices at thin margins, in the hopes of earning higher profits on sales of more lucrative games, the move suggests Nintendo is trying to avoid selling its Switch handheld consoles at a loss.

Videogame platform owners tend to sell hardware at a thin profit in hopes of earning revenue from more-lucrative software sales.

For the Switch, the latter half of 2019, including the holiday season, is a key period to lock in sales because competitor Microsoft Corp. , maker of the Xbox One, is planning a next-generation console for the 2020 holiday season.

Presumably, it's a sign that companies aren't waiting around to see if Trump and Xi manage to come to an amicable solution in Japan later this month.

Categories: ZH