Nintendo President Worries U.S. Tariffs Could Impact Switch 2 Sales

Nintendo recently unveiled its financial results for the 2025 fiscal year, spanning from April 2024 to March 2025. During the online press conference on May 8, President Shuntaro Furukawa discussed the company's high expectations for the upcoming Switch 2, set to launch on June 5. The anticipation for this next-generation console is palpable, with Nintendo's official pre-order lotteries being massively oversubscribed, particularly in Japan. To meet this soaring demand, Nintendo is ramping up production and has set ambitious targets for the 2026 fiscal year, forecasting 15 million units of Switch 2 hardware sales and 45 million units of software sales worldwide.

The launch of the Switch 2 is expected to significantly boost Nintendo's overall sales in FY2026 by 63.1%, aiming for 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 highlighted potential obstacles that could affect the Switch 2's success, particularly in the U.S. market. The next-gen console, which boasts enhanced features and improvements, comes with a higher price tag than its predecessor, presenting challenges in maintaining profitability.

Furukawa expressed concerns about the impact of U.S. tariffs on the Switch 2 and the spending power of American consumers. He noted that these tariffs could affect Nintendo's profits by "tens of billions of yen." He further explained that if the cost of daily necessities like food rises due to tariffs, people might have less disposable income for luxury items such as game consoles. Adjusting the Switch 2's price in response to tariffs could potentially dampen demand.

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Analysts have described Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," given the uncertainties surrounding tariffs. Despite these concerns, the demand for the Switch 2 appears to be enormous. Following a delay caused by tariffs, pre-orders commenced on April 24, with the console's price set at $449.99. The response was overwhelming, and Nintendo has 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 those eager to secure a Switch 2, check out IGN's comprehensive Nintendo Switch 2 pre-order guide for more information.