Earlier today, Nintendo announced that shipments of Switch peripherals, including the Joy-Con and Ring-Con, would be delayed in Japan due to the Coronavirus outbreak in China. Although it's not the case right now, industry analysts think this could have a knock-on effect for the US market.
Nintendo said earlier today in a statement that shipments of Switch peripherals would be delayed for the Japanese market. Switch peripherals like Joy-Cons and Ring-Cons (used for Ring Fit Adventure) are manufactured in China, where the Coronavirus has now spread to every mainland region of the country.
The company told Bloomberg News that it would consider shipping hardware from a manufacturing site in Vietnam to Japan instead, but only if the situation in China worsened. This Vietnam-based manufacturing site currently sends the vast majority of its stock to the US market.
At present, the delay in manufacturing from China isn't expected to have an effect on the US market, but Nikko Partners industry analyst Daniel Ahmad thinks this could change. "When looking at games consoles specifically, we note that 96% of video game consoles imported to the US in 2018 were produced in China," Ahmad told CNBC. "Whilst companies such as Nintendo have moved some manufacturing abroad, China still accounts for the majority."
It's not clear yet how long the delay in manufacturing Nintendo Switch hardware in China due to the Coronavirus will last. We'll report back on any future developments.