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

Nintendo recently unveiled its financial outcomes for the fiscal year 2025 (spanning April 2024 to March 2025) and during the online press conference held on May 8, President Shuntaro Furukawa shared insights into the high expectations for the upcoming Switch 2, alongside potential challenges such as U.S. tariffs that could affect its success. As the launch date of June 5 draws near, the demand for the Switch 2 is soaring, with Nintendo's official pre-order lotteries being significantly oversubscribed, particularly in Japan. The company is ramping up production efforts to meet this demand and is forecasting sales of 15 million Switch 2 units and 45 million software units worldwide for the fiscal year 2026 (April 2025 to March 2026).

Nintendo is optimistic that the launch of the Switch 2 will propel its overall sales for FY2026 by 63.1% to 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). However, Furukawa expressed concerns about the U.S. market and the future profitability of the Switch 2. As a next-generation console with enhanced features and improvements, the Switch 2 comes with a higher price tag than its predecessor.

Furukawa noted, "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 first year, and Nintendo is targeting at least 15 million units for the Switch 2. These "corresponding hurdles" include concerns about the U.S., which has been 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 press conference, Furukawa stated that the tariff policy 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 appears to be immense. Following a delay due to tariffs, pre-orders for the Switch 2 opened on April 24, with the console priced at $449.99, and they were met with overwhelming response. Nintendo has also issued a warning to U.S. customers who applied for a Switch 2 pre-order from the My Nintendo Store, stating 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.