A brand new report from The Wall Avenue Journal revealed this week throughout E3 2019 reveals new particulars about Nintendo’s rumored new Swap fashions. Particularly, the report states that Nintendo has determined to supply the brand new techniques in Southeast Asia as an alternative of China over issues about potential United States tariffs on electronics made in China.

As we reported beforehand, President Trump’s proposed import tax price of 25 p.c would span online game consoles, in addition to smartphones and computer systems. In principle, this might result in worth will increase on sport consoles–from Nintendo, in addition to Microsoft and Sony–as firms go on the price to customers.

Recreation consoles aren’t traditionally the place the cash is made within the video games enterprise. Oftentimes, techniques are bought at a loss, with income as an alternative coming from software program and companies.

Ought to the 25 p.c tariff go into impact for Swap consoles shipped into america, that may influence how a lot cash Nintendo–and different companies–make on console gross sales. Nintendo has been the outlier on this space, nonetheless, as the corporate maintained from day considered one of Swap gross sales in 2017 that it makes cash on every console bought.

If the 25 p.c tariff goes into impact, that might lower into the Swap’s revenue profile, which is probably going why Nintendo has elected to maneuver manufacturing of the console outdoors of China.

In line with WSJ’s report, Nintendo has already moved manufacturing of the present Swap mannequin, in addition to the 2 new rumored ones, to Southeast Asia. Concerning the brand new techniques, one is claimed to have the same kind issue to the present mannequin however function higher elements, with the opposite anticipated to have a unique look and decrease specs that make it cheaper. Given the techniques are actually reportedly in manufacturing, they may launch quickly, WSJ stated.

Nintendo declined to touch upon the report when approached by WSJ.

It is unclear when Nintendo could announce the brand new Swap fashions, if they’re certainly actual. The corporate stated earlier than E3 that it might not announce the brand new techniques throughout E3. As a substitute, Nintendo made a sequence of software program bulletins, together with The Witcher three for Nintendo Swap and a sequel to The Legend of Zelda: Breath of the Wild.

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