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 Switch 2, as well as potential challenges, including U.S. tariffs, that could affect its success. As the launch date of June 5 draws near, demand for the Switch 2 is soaring, with Nintendo's official pre-order lotteries in Japan being massively oversubscribed. In response, Nintendo is ramping up production efforts to meet this demand. The company forecasts selling 15 million units of Switch 2 hardware and 45 million units of software worldwide during the 2026 fiscal year (April 2025 to March 2026).

Nintendo is optimistic that the Switch 2's launch will significantly boost its overall sales for FY2026 by 63.1%, aiming for 1.9 trillion yen (approximately $13.04 billion USD) and increasing 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 future profitability of the Switch 2. As a next-generation console with enhanced features and improvements, the Switch 2 comes with a higher price tag 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 targeting at least 15 million units for the Switch 2.

These "corresponding hurdles" include concerns about the U.S., which has been Nintendo's largest market for the original Switch. Furukawa highlighted the potential impact of Trump's tariffs on the Switch 2 and the spending power of American consumers. He stated that the tariff policy could affect Nintendo's profits by "tens of billions of yen," adding, "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 appears to be immense. Following 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 response. Nintendo has also issued a warning to U.S. customers who applied for a Switch 2 pre-order from the My Nintendo Store, stating that release date delivery is not guaranteed due to the high demand.

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