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

Nintendo has released its financial results for the fiscal year 2025 (April 2024-March 2025), and during the online press conference on May 8, President Shuntaro Furukawa provided insights into the company's high expectations for the upcoming Switch 2. The console is set to launch on June 5, and the demand is already soaring, particularly in Japan, where Nintendo's pre-order lotteries have been massively oversubscribed. In response, Nintendo is ramping up production efforts and anticipates selling 15 million Switch 2 units and 45 million software units globally in the fiscal year 2026 (April 2025 to March 2026).

The launch of the Switch 2 is expected to significantly boost Nintendo's overall sales for FY2026, with a projected increase of 63.1% to 1.9 trillion yen (approximately $13.04 billion USD) and a 7.6% rise in final profits to 300 billion yen (approximately $2.05 billion USD).

However, Furukawa expressed concerns about the U.S. market and the future profitability of the Switch 2. The console, which comes with enhanced features and improvements over its predecessor, is priced higher. Furukawa acknowledged the pricing challenge, 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 quoted in the Yomiuri Shimbun. The original Switch sold 15.05 million units in its debut year, and Nintendo is aiming for at least 15 million units for the Switch 2.

The "corresponding hurdles" include potential issues in the U.S., which has been Nintendo's largest market for the Switch 1. Furukawa highlighted the impact of Trump's tariffs, which he estimated would affect Nintendo's profits by "tens of billions of yen." He added, "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."

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Analysts have described Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," citing the uncertainty surrounding tariffs. Despite these concerns, the demand for the Switch 2 appears to be immense. After a delay due to tariffs, pre-orders for the Switch 2 opened on April 24, with the console priced at $449.99, and they sold out rapidly. Nintendo has also warned U.S. customers who applied for a Switch 2 pre-order through the My Nintendo Store that release date delivery is not guaranteed due to the high demand.

For more information, check out IGN's Nintendo Switch 2 pre-order guide.