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

Nintendo has unveiled its financial results for the 2025 fiscal year, spanning from April 2024 to March 2025. In an online press conference held on May 8, President Shuntaro Furukawa elaborated on the company's high hopes for the upcoming Switch 2, set to launch on June 5, as well as the challenges it might face, including potential U.S. tariffs.

The excitement for the Switch 2 is palpable, with Nintendo's official pre-order lotteries being massively oversubscribed, particularly in Japan. In response, Nintendo is ramping up production efforts to meet the soaring demand. The company is forecasting sales of 15 million Switch 2 units and 45 million software units worldwide for the 2026 fiscal year (April 2025 to March 2026).

Nintendo anticipates that the Switch 2 launch will significantly boost its overall sales for FY2026 by 63.1%, aiming for a total of 1.9 trillion yen (approximately $13.04 billion USD), and an increase in 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 future profitability of the Switch 2. The next-gen console, which boasts enhanced features and improvements, comes with a higher price tag than its predecessor. Furukawa acknowledged the challenges, 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 reported by the Yomiuri Shimbun. The original Switch sold 15.05 million units in its first year, and the Switch 2 is projected to match or exceed this figure.

These "corresponding hurdles" include concerns about the U.S., Nintendo's largest market for the original Switch. Furukawa highlighted the potential impacts of Trump's tariffs on the Switch 2 and American consumers' spending power. During the press conference, he noted that the tariff policy could reduce 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 uncertainties surrounding tariffs. Despite these challenges, the demand for the Switch 2 appears to be enormous. After a delay due to tariffs, pre-orders for the Switch 2 began on April 24, with the console priced at $449.99. The response was overwhelming. Additionally, Nintendo has issued a warning to U.S. customers who pre-ordered through the My Nintendo Store, indicating that release date delivery is not guaranteed due to the exceptionally high demand.

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