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

Nintendo has unveiled its financial results for the fiscal year 2025 (April 2024-March 2025), and during an online press conference on May 8, President Shuntaro Furukawa discussed the high expectations for the upcoming Switch 2, set to launch on June 5. The demand for the Switch 2 is soaring, with Nintendo's official pre-order lotteries being significantly oversubscribed, particularly in Japan. In response, Nintendo is intensifying efforts to ramp up production to meet this demand. The company has set ambitious targets for the 2026 fiscal year (April 2025 to March 2026), forecasting sales of 15 million Switch 2 units and 45 million units of software worldwide.

Nintendo anticipates that the launch of the Switch 2 will significantly boost its overall sales for FY2026 by 63.1%, reaching 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. The new console, featuring enhanced capabilities and improvements over the original, comes with a higher price tag, which poses challenges.

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 the Switch 2 is expected to match or exceed this figure. Yet, the "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.

During the press conference, Furukawa mentioned that the tariff policy could affect 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 labeled Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," citing uncertainties around tariffs. Despite these challenges, the demand for the Switch 2 remains robust. After a delay due to tariffs, pre-orders for the Switch 2 opened on April 24, with the console priced at $449.99, and they were met with overwhelming demand. Nintendo has also warned U.S. customers who pre-ordered through the My Nintendo Store that release date delivery is not guaranteed due to high demand.

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