Knowledge-based discourse

The reason that Nintendo partners with Salim Group to enter Indonesia is simple: growth (img below). Their sales in the “Other” region has been increasing in the Switch era—despite the setback in China—while the shares of Japanese and European markets gradually decline. The share of the Americas also grew until the trade war began in FY2026-03; my speculation (no data) is that Latin America was the its area of expansion.

With the potential high costs of PS6 and Project Helix, Switch may be the only console system that can effectively expand in these growth markets. Judging from the Indonesian presser, Switch 1 in particular seems to feature prominently in Nintendo’s plan for Indonesia. Its more accessible price and extensive game catalog could play an important role in the Other market.

👆 In FY26, sales of Switch 1 hardware dropped 66.3% YoY in Japan + Americas + Europe combined, but 52.3% in Other

👆 In Q1 FY27, sales of Switch 1 hardware declined 35% YoY in Japan + Americas + Europe, but only 11.8% in Other

Although the sample size isn’t large, it signals that Switch 1 has stronger legs in the Other market. It’s little wonder that Nintendo’s rumored India plan centered on Switch 1 too. (I’m skeptical of the “selling only Switch 1” claim though; see my reason here.)

Some of you probably remember the 2024 report that Foxconn Group (Hon Hai) invested in the Song Khoai Industrial Park in Quang Ninh, Vietnam, and would begin assembling Switch 1 consoles and accessories there from Jan. 2027. However, newer reports since then contain no reference to the Switch, but only Foxconn production lines for EV parts, monitors, and printers at Song Khoai (img below). It seems that their Switch 1 manufacturing plan might have changed or delayed.

(Sources in alt text)

Related:
Southeast Asian market for Nintendo
Pokémon’s Asia Expansion Plan

[Originally posted on 2026-08-11 and -12 Pacific Time]