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

Nintendo recently unveiled its financial results for the 2025 fiscal year (April 2024-March 2025) during an online press conference on May 8. President Shuntaro Furukawa elaborated on Nintendo's high hopes for the upcoming Switch 2, while also addressing potential challenges, such as U.S. tariffs, that could affect its success. As the launch date of June 5 draws near, demand for the Switch 2 has surged, with Nintendo's official pre-order lotteries seeing an overwhelming response, particularly in Japan. In response, Nintendo is ramping up production efforts to meet this demand. The company is forecasting a robust performance for the Switch 2, with expected hardware sales of 15 million units and software sales of 45 million units worldwide in the 2026 fiscal year (April 2025 to March 2026).

Nintendo anticipates 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 an increase in final profits by 7.6%, targeting 300 billion yen (approximately $2.05 billion USD).

Despite the optimism, Furukawa expressed concerns regarding the U.S. market and the profitability of the Switch 2. With its enhanced features and improvements, the Switch 2 comes at a higher price point than its predecessor. Furukawa noted, as quoted 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 Switch 1 achieved sales of 15.05 million units in its first year, and Nintendo is forecasting at least 15 million units for the Switch 2.

The "corresponding hurdles" include potential impacts from U.S. tariffs, which could affect Nintendo's profits significantly. Furukawa mentioned that the tariff policy could impact the company's profits by "tens of billions of yen." He further 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," reflecting the uncertainty surrounding tariffs. Despite these challenges, the demand for the Switch 2 appears to be immense. Following a delay attributed to tariffs, pre-orders for the Switch 2 opened on April 24, with the console priced 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 overwhelming demand.

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