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

Nintendo has recently unveiled its financial results for the fiscal year 2025 (April 2024 to March 2025), and during the online press conference on May 8, President Shuntaro Furukawa provided detailed insights into the company's high hopes for the upcoming Switch 2, as well as the challenges it might face, including U.S. tariffs.

With the launch date of June 5 drawing closer, demand for the Switch 2 is surging, particularly in Japan where Nintendo's pre-order lotteries have been massively oversubscribed. In response, Nintendo is ramping up production to meet this demand. The company is forecasting sales of 15 million Switch 2 units and 45 million units of software worldwide for the fiscal year 2026 (April 2025 to March 2026).

Nintendo also anticipates that the launch of the Switch 2 will significantly boost its overall sales for FY2026, with a projected increase of 63.1% to 1.9 trillion yen (approximately $13.04 billion USD) and final profits rising by 7.6% to 300 billion yen (approximately $2.05 billion USD).

However, Furukawa expressed concerns regarding the U.S. market and the future profitability of the Switch 2. The new console, boasting extra features and improvements over its predecessor, comes with a higher price tag. Furukawa noted in the Yomiuri Shimbun, "The unit sales price is high, and there are corresponding hurdles, however we are aiming for a launch on par with (the first) Switch." 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.

The "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." He further explained, "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 remains exceptionally high. After a delay due to tariffs, pre-orders for the Switch 2 opened on April 24, with the console priced at $449.99. The response was overwhelming, and Nintendo has warned U.S. customers who applied for a pre-order from 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.