Mario goes to Vietnam: Nintendo looks to move away from China amid trade war

Nintendo Switch

As Nintendo prepares to unveil the highly anticipated Switch 2, the gaming giant is also navigating a global trade war. With potential US tariffs looming, according to a report by The Financial Times, Nintendo has been quietly shifting production away from China, with Vietnam and Cambodia emerging as key manufacturing hubs.

The Kyoto-based company has been restructuring its supply chain since the first Trump administration, and the suggest that more than half of its US-bound hardware now originates from Vietnam. Analysts estimate that hundreds of thousands of Switch 2 units have already been shipped from Vietnam to the US, as Nintendo works to stockpile inventory ahead of possible tariff changes.

David Gibson of MST Financial reports that in January alone, Nintendo exported 383,000 Switch 2 units from Vietnam to the US. This was likely a test of the distribution network and a precaution against trade risks, Gibson told The Financial Times. Data indicates that Vietnam now accounts for 60% of Nintendo’s US shipments, as per the report.

The original Switch, launched in 2017, became a runaway success, selling over 150 million units. The Switch 2 aims to build on that momentum with a more powerful console and a larger display. However, pricing remains a concern. Analysts predict Nintendo may price the Switch 2 at $399, factoring in possible tariffs on Vietnamese imports.

Despite uncertainty, Nintendo’s stock has surged 25% this year. With major contract manufacturers expanding in Vietnam and Cambodia, the company is betting on its new supply chain strategy. But the question remains — how long can Vietnam avoid becoming the next trade war target? For now, Mario has found a new home in Vietnam.