Nintendo President Warns U.S. Tariffs May Impact Switch 2 Demand

Nintendo has unveiled its financial results for the 2025 fiscal year, spanning April 2024 to March 2025. During an online press conference on May 8, President Shuntaro Furukawa provided insights into Nintendo's high hopes for the upcoming Switch 2, set to launch on June 5. The demand for this next-generation console is soaring, with Nintendo's official pre-order lotteries in Japan being significantly oversubscribed. To meet this demand, Nintendo is intensifying its production efforts and anticipates selling 15 million Switch 2 units and 45 million software units worldwide during 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%, targeting 1.9 trillion yen (approximately $13.04 billion USD), and increasing final profits by 7.6% to 300 billion yen (approximately $2.05 billion USD). However, Furukawa expressed concerns regarding the U.S. market and the Switch 2's profitability. The new console, boasting enhanced features and improvements, comes with a higher price tag than its predecessor.

“The unit sales price is high, and there are corresponding hurdles, however we are aiming for a launch on par with (the first) Switch,” Furukawa stated, as reported by the Yomiuri Shimbun. The original Switch sold 15.05 million units in its debut year, and Nintendo is forecasting at least 15 million units for the Switch 2. These "corresponding hurdles" include potential impacts from U.S. tariffs, which have been a significant market for the original Switch. Furukawa highlighted that these tariffs could affect Nintendo's profits by "tens of billions of yen" and could reduce consumer spending power on game consoles if the prices of daily necessities rise.

Despite these concerns, the demand for the Switch 2 remains robust. After a delay caused by tariffs, pre-orders opened on April 24, with the console priced at $449.99. The response was overwhelming, and Nintendo has cautioned U.S. customers who pre-ordered from the My Nintendo Store that release date delivery may not be guaranteed due to high demand.

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Analysts have described Nintendo's sales forecast for the Switch 2 as "conservative," citing the uncertainty around tariffs. For more information on securing your Switch 2, check out IGN's Nintendo Switch 2 pre-order guide.