Nintendo President Worries U.S. Tariffs May Impact Switch 2 Sales
Nintendo has unveiled its financial results for the 2025 fiscal year (April 2024 to March 2025), and in a recent online press conference on May 8, President Shuntaro Furukawa shared insights into the company's ambitious plans for the upcoming Switch 2. As the launch date of June 5 nears, excitement for the Switch 2 is palpable, with Nintendo's official pre-order lotteries being significantly oversubscribed, particularly in Japan. In response to this high demand, Nintendo is ramping up production efforts, forecasting sales of 15 million Switch 2 units and 45 million software units globally for the 2026 fiscal year (April 2025 to March 2026).
The launch of the Switch 2 is expected to significantly boost Nintendo's overall sales in FY2026 by 63.1%, reaching 1.9 trillion yen (approximately $13.04 billion USD), with a projected increase in final profits by 7.6% to 300 billion yen (approximately $2.05 billion USD).
However, Furukawa expressed concerns about potential challenges in the U.S. market that could affect the Switch 2's profitability. As a next-generation console with enhanced features and improvements, the Switch 2 comes with a higher price tag than its predecessor. Furukawa acknowledged the challenges this presents, stating, “The unit sales price is high, and there are corresponding hurdles, however we are aiming for a launch on par with (the first) Switch,” as reported by the Yomiuri Shimbun. The original Switch sold 15.05 million units in its debut year, and Nintendo is targeting at least 15 million units for the Switch 2.
These challenges include concerns about the U.S., which has been Nintendo’s largest market for the original Switch. Furukawa highlighted the potential impact of Trump's tariffs on the Switch 2 and the purchasing power of American consumers. In the press conference, he noted that the tariff policy could reduce Nintendo’s profits by “tens of billions of yen.” He further elaborated, “If prices of daily necessities like food increase (because of the tariffs), then people will have less money to spend on game consoles. If we were to adjust the price of the Switch 2 (in response to the tariffs), this could decrease demand.”
Nintendo Switch 2 System and Accessories Gallery
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Analysts have labeled Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," citing uncertainties related to tariffs. Despite these concerns, the demand for the Switch 2 remains exceptionally high. After a delay caused by tariffs, pre-orders for the Switch 2 commenced on April 24, with the console priced at $449.99, and the response was overwhelmingly positive. Nintendo has also issued a warning to U.S. customers who pre-ordered through the My Nintendo Store, indicating that delivery by the release date is not guaranteed due to the intense demand.
For more information on securing your Switch 2, check out IGN's Nintendo Switch 2 pre-order guide.
