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

Nintendo has recently unveiled its financial results for the 2025 fiscal year, spanning from April 2024 to March 2025, during an online press conference on May 8. President Shuntaro Furukawa provided insights into the company's high expectations for the upcoming Nintendo Switch 2, while also highlighting 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 surging. Nintendo's official pre-order lotteries have been massively oversubscribed, particularly in Japan. In response, the company is ramping up production efforts to meet this demand. Nintendo forecasts sales of 15 million Switch 2 units and 45 million software units worldwide for the 2026 fiscal year (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).

However, Furukawa expressed concerns about the U.S. market and the profitability of the Switch 2. As a next-generation console with enhanced features and improvements, the Switch 2 is priced higher 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 forecasting at least 15 million units for the Switch 2.

These "corresponding hurdles" include potential issues in the U.S., Nintendo's largest market for the original Switch. Furukawa highlighted concerns about Trump's tariffs and their impact on the Switch 2 and American consumers' spending power. He mentioned that the tariff policy could reduce Nintendo's profits by "tens of billions of yen," stating, "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."

Despite these concerns, demand for the Switch 2 remains robust. After a delay due to tariffs, pre-orders opened on April 24 with the console priced at $449.99 and were met with overwhelming response. Nintendo has warned U.S. customers who pre-ordered via the My Nintendo Store that release date delivery is not guaranteed due to high demand.

Analysts have described Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," citing the uncertainty surrounding tariffs. For more detailed information, check out IGN's Nintendo Switch 2 pre-order guide.

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