Nintendo President Worries U.S. Tariffs May Hurt Switch 2 Sales

Nintendo has recently disclosed its financial outcomes for the fiscal year 2025 (April 2024 to March 2025). In an enlightening online press conference held on May 8, President Shuntaro Furukawa elaborated on the company's high hopes for the upcoming Switch 2, while also addressing potential hurdles, including U.S. tariffs, that could affect its success. With the launch date set for June 5, anticipation for the Switch 2 is soaring, particularly evident in Japan where pre-order lotteries have been overwhelmingly subscribed. Nintendo is actively enhancing its production capabilities to meet this surging demand, projecting sales of 15 million Switch 2 units and 45 million software units globally for 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 by 63.1%, aiming for 1.9 trillion yen (approximately $13.04 billion USD), and increase final profits by 7.6% to 300 billion yen (approximately $2.05 billion USD).

Despite the enthusiasm, Furukawa expressed concerns regarding the U.S. market and the Switch 2's future profitability. As a next-generation console with enhanced features and improvements over the original, the Switch 2 comes with a higher price tag, presenting certain challenges. Furukawa stated, "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 the Switch 2 is expected to achieve at least 15 million units in its first year.

The "corresponding hurdles" include concerns about the U.S., Nintendo's largest market for the Switch 1. Furukawa highlighted the potential impact of Trump's tariffs on the Switch 2 and the spending power of American consumers. During the online press conference, he noted that the tariff policy could 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 uncertainties related to tariffs. Nevertheless, the demand for the Switch 2 appears robust. After a delay attributed to tariffs, pre-orders commenced on April 24, with the console priced at $449.99, and the response has been overwhelming. Nintendo has also cautioned U.S. customers who pre-ordered through the My Nintendo Store that delivery on the release date is not guaranteed due to exceptionally high demand.

For further details on securing a Switch 2, check out IGN's Nintendo Switch 2 pre-order guide.