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

Nintendo's financial results for the 2025 fiscal year, covering April 2024 to March 2025, were recently disclosed, and during the online press conference on May 8, President Shuntaro Furukawa elaborated on the company's high hopes for the upcoming Switch 2. As the launch date of June 5 draws near, the demand for the Switch 2 is surging, with Nintendo's official pre-order lotteries experiencing massive oversubscription, particularly in Japan. To meet this demand, Nintendo is ramping up production and anticipates selling 15 million Switch 2 units and 45 million units of software worldwide during the 2026 fiscal year (April 2025 to March 2026).

The Japanese gaming giant is optimistic that the Switch 2's launch will significantly boost overall sales in 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 future profitability of the Switch 2. Given its advanced features and enhancements, 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 forecasts the Switch 2 to sell at least 15 million units.

These "corresponding hurdles" include concerns about the U.S., Nintendo's largest market for the original Switch. Furukawa highlighted the potential impact of Trump's tariffs on the Switch 2's profitability and on American consumers' spending power. During the press conference, he stated 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."

Nintendo Switch 2 System and Accessories Gallery

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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 challenges, the demand for the Switch 2 appears to be exceptionally high. After a delay attributed to tariffs, pre-orders for the Switch 2 went live on April 24 with the console's price set at $449.99, and they were met with overwhelming demand. 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.