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

Nintendo has recently unveiled its financial outcomes for the fiscal year 2025 (April 2024 to March 2025), and during the online press conference on May 8, President Shuntaro Furukawa shared insights into the high expectations surrounding the upcoming Switch 2, while also addressing potential challenges, notably U.S. tariffs. As the launch date of June 5 draws closer, the demand for the Switch 2 is soaring, with Nintendo's official pre-order lotteries being massively oversubscribed, particularly in Japan. Nintendo is actively "working to strengthen their production to meet demand," and anticipates selling 15 million units of Switch 2 hardware and 45 million units of software globally in the fiscal year 2026 (April 2025 to March 2026).

Moreover, the Japanese gaming giant expects the Switch 2's launch to significantly boost its overall sales in FY2026 by 63.1% to 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. As a next-generation console with enhanced features and improvements over the original, the Switch 2 comes with a higher price tag. Furukawa stated, "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 projected to achieve at least 15 million units in sales.

These "corresponding hurdles" include worries about the U.S., Nintendo's largest market for the original Switch. Furukawa highlighted the potential impacts of Trump's tariffs on the Switch 2 and the spending power of American consumers. During the online press conference, he noted that the tariff policy could affect Nintendo's profits by "tens of billions of yen," and added, "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 Switch 2 sales forecast as "conservative," citing uncertainties related to 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 commenced on April 24, with the console's price set 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 very high demand.

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