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

Nintendo has recently unveiled its financial outcomes for the fiscal year ending March 2025, and during the online press conference on May 8, President Shuntaro Furukawa provided deeper insights into the company's ambitious plans for the Switch 2. As the launch date of June 5 draws near, the excitement for the Switch 2 is palpable, with pre-order lotteries in Japan being massively oversubscribed. Nintendo is ramping up production efforts to meet this surging demand and projects to sell 15 million units of Switch 2 hardware and 45 million units of software worldwide in the fiscal year 2026 (April 2025 to March 2026).

The launch of the Switch 2 is expected to significantly boost Nintendo's overall sales in FY2026 by 63.1% to 1.9 trillion yen (approximately $13.04 billion USD), with final profits projected to increase by 7.6% to 300 billion yen (approximately $2.05 billion USD).

However, amidst the high expectations, Furukawa expressed concerns about potential challenges in the U.S. market and the Switch 2's profitability. The Switch 2, being a next-generation console with enhanced features and improvements, comes with a higher price tag compared to its predecessor. Furukawa noted in 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, while the Switch 2 is targeted to sell at least 15 million units.

These "corresponding hurdles" include apprehensions about the U.S., Nintendo's largest market for the original Switch. Furukawa highlighted the potential impacts of U.S. tariffs on the Switch 2 and the spending power of American consumers. He mentioned that the tariff policy could affect 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."

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Analysts have labeled Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," citing the uncertainties surrounding tariffs. Despite these challenges, the demand for the Switch 2 remains incredibly high. After a delay due to tariff concerns, pre-orders for the Switch 2, priced at $449.99, commenced on April 24 and were met with overwhelming response. Additionally, Nintendo has cautioned U.S. customers who pre-ordered through the My Nintendo Store that delivery on the release date is not guaranteed due to the high demand.

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