Nintendo has moved part of its production of the Nintendo Switch to Malaysia, according to a report by The Star.
The Nintendo Switch is one of the best selling consoles this year, as more people bought the console to cope with having to stay at home during the Covid 19 Pandemic. Due to increased demand as well as an ongoing trade war between the US and China, Nintendo moved part of the production of its Switch console to Malaysia, making it the third country after China and Vietnam.
According to the report, Nintendo President Shuntaro Furukawa says that Nintendo had long been looking to diversify its production line for the Switch. Naturally, the factories in Malaysia are a part of this effort.
The factories are owned by Sharp Corporation, an Osaka-based tech company. The company has a storied history with Nintendo, producing the original Famicom as well as parts for the Nintendo 3DS.
There are several reasons for Nintendo to be diversifying its production line, both mentioned in the report. The first was a result of ongoing tensions in the trade war between the US and China. With a bulk of Switch production being handled by Foxconn in China, Nintendo needs to hedge their bets if the US were to suddenly call an embargo on products manufactured in the country.
The second reason is related to the Covid 19 pandemic, which saw a huge boost in sales for the console. Games like Animal Crossing: New Horizons were hugely popular during the start of the pandemic, making the Nintendo Switch a must-have for everyone stuck indoors.
According to President Furukawa, the factories will be operating at maximum capacity through the holiday season, rather than stopping after the holiday season.
According to the report, Nintendo aims to exceed last year’s 10.8 million units shipped.