Nintendo President Worries U.S. Tariffs Could Impact Switch 2 Demand
Nintendo has unveiled its financial results for the 2025 fiscal year (April 2024-March 2025), and during the online press conference on May 8, President Shuntaro Furukawa shared insights into the company’s high hopes and potential challenges for the upcoming Switch 2. As the launch date of June 5 draws near, demand for the Switch 2 is soaring, particularly in Japan where Nintendo's official pre-order lotteries are massively oversubscribed. To meet this demand, Nintendo is ramping up production and has set ambitious targets for the 2026 fiscal year (April 2025 to March 2026), forecasting 15 million units in hardware sales and 45 million units in software sales worldwide.
The launch of the Switch 2 is expected to significantly boost Nintendo’s 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 Switch 2's profitability due to its higher price point compared to the original Switch. The Switch 2, which boasts enhanced features and improvements, is priced higher, creating hurdles that Nintendo aims to overcome to match the first Switch's launch success, which saw sales of 15.05 million units in its debut year.
A significant concern raised by Furukawa is the impact of U.S. tariffs, which could affect Nintendo's profits by "tens of billions of yen." He noted that if tariffs increase the prices of daily necessities like food, it could reduce consumers' disposable income, thereby impacting their ability to purchase game consoles. Adjusting the Switch 2's price in response to tariffs might also dampen demand.
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Analysts have described Nintendo's forecast of 15 million Switch 2 sales as "conservative," considering the uncertainty surrounding tariffs. Despite these challenges, the demand for the Switch 2 remains exceptionally high. Following a delay caused by tariffs, pre-orders for the Switch 2 commenced on April 24 at a fixed price of $449.99, and they were met with overwhelming response. Nintendo has also issued a warning to U.S. customers who pre-ordered through the My Nintendo Store, stating that release date delivery is not guaranteed due to the high demand.
For more details on securing a Switch 2, check out IGN's comprehensive Nintendo Switch 2 pre-order guide.
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