Nintendo is pulling Nintendo Switch production out of China following U.S tariffs on China-produced electronics.

Following the US’s harsh trade regulations on Chinese companies such as Huawei, Japanese video game developer Nintendo is pulling away from its neighbouring country.

In a report by Wall Street Journal, sources from within Nintendo’s supply chain have confirmed that production is moving to Southeast Asia in order to avoid the US’ new trade tariffs. With the company still aiming to fulfil the hardware demands of the US consumers, Nintendo is currently quickly and quietly moving ship.

WSJ claims that production of Nintendo’s new Nintendo Switch models will be starting very soon, the company is wholly ramping up hardware production alongside the new move. With current Switch builds and the upcoming two successors, the company’s Switch hardware product will be considerably prominent wherever it moves.

A spokesperson from Nintendo responded to Wall Street stating that while they declined to comment about the existence of the new Switch iterations, the company is looking at shifting Nintendo Switch production out of China.

Despite this troubling hardware issue, Nintendo is currently killing it in the software department. With strong third-party offerings like The Witcher 3 and Doom Eternal, and a healthy helping of first-party software, Nintendo’s Switch console isn’t struggling anytime soon.

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