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

Nintendo has unveiled its financial results for the fiscal year 2025, covering April 2024 to March 2025. During an online press conference on May 8, President Shuntaro Furukawa discussed the company's high hopes for the upcoming Switch 2, set to launch on June 5, while also addressing potential challenges, including U.S. tariffs.

The anticipation for the Switch 2 is palpable, with pre-order lotteries in Japan seeing overwhelming demand. Nintendo is ramping up production to meet this surge and projects to sell 15 million units of the Switch 2 hardware and 45 million units of software globally during the 2026 fiscal year (April 2025 to March 2026).

The launch of the Switch 2 is expected to significantly boost Nintendo's overall sales 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) for FY2026.

However, Furukawa expressed concerns about the U.S. market and the Switch 2's profitability. The console, boasting enhanced features and improvements, 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 debut year, and Nintendo forecasts at least 15 million units for the Switch 2.

The "corresponding hurdles" include potential impacts from U.S. tariffs, which have been a significant concern for Nintendo, especially given that the U.S. has been the biggest market for the original Switch. Furukawa highlighted that the tariff policy could reduce Nintendo's profits by "tens of billions of yen." He further elaborated, "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 labeled Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," citing uncertainties related to tariffs. Despite these concerns, the demand for the Switch 2 remains robust. Following a delay attributed to tariffs, pre-orders opened on April 24 at a fixed price of $449.99, and they were met with the expected high demand. Nintendo has cautioned U.S. customers who pre-ordered via the My Nintendo Store that delivery on the release date is not guaranteed due to the overwhelming demand.

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