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

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 Switch 2, alongside potential challenges such as U.S. tariffs that could affect its success. As the launch date of June 5 nears, the demand for the Switch 2 is surging, with Nintendo's official pre-order lotteries experiencing overwhelming subscription rates, 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 2026 fiscal year (April 2025 to March 2026).

Nintendo is also optimistic that the Switch 2's launch will significantly boost its overall sales for FY2026, projecting a 63.1% increase to 1.9 trillion yen (approximately $13.04 billion USD) and a 7.6% rise in final profits to 300 billion yen (approximately $2.05 billion USD).

Despite these high expectations, Furukawa expressed concerns about the U.S. market and the future profitability of the Switch 2. The next-gen console, boasting enhanced features and improvements, comes with a higher price tag than its predecessor. Furukawa noted, as reported by the Yomiuri Shimbun, "The unit sales price is high, and there are corresponding hurdles, however we are aiming for a launch on par with (the first) Switch." The original Switch sold 15.05 million units in its debut year, and Nintendo is targeting 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 the impact of Trump's tariffs on the Switch 2 and the spending power of American consumers. In the press conference, he stated that the tariff policy could affect Nintendo's profits by "tens of billions of yen." He 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 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 remains robust. After a delay due to tariffs, pre-orders for the Switch 2 commenced on April 24, with the console's price set at $449.99, and they were met with the expected high demand. Nintendo has also issued a warning to U.S. customers who applied for a Switch 2 pre-order through the My Nintendo Store, stating that release date delivery is not guaranteed due to the intense demand.

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