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

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

Author : Allison Update:May 13,2025

Nintendo has unveiled its financial results for the 2025 fiscal year (April 2024-March 2025), and during an online press conference on May 8, President Shuntaro Furukawa shared insights into the company’s ambitious plans for the Switch 2. As the launch date of June 5 draws near, demand for the Switch 2 is skyrocketing, with Nintendo's official pre-order lotteries being massively oversubscribed, 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 globally in the 2026 fiscal year (April 2025 to March 2026).

The Japanese gaming giant is also banking on the Switch 2 to significantly boost its overall sales for FY2026, projecting a 63.1% increase to 1.9 trillion yen (approximately $13.04 billion USD) and a 7.6% rise in final profits 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. The next-gen console, boasting enhanced features and improvements over its predecessor, comes with a higher price tag. "The unit sales price is high, and there are corresponding hurdles, however, we are aiming for a launch on par with (the first) Switch," Furukawa stated, as reported by the Yomiuri Shimbun. The original Switch sold 15.05 million units in its first year, and the Switch 2 is forecasted to achieve at least 15 million units.

These "corresponding hurdles" include potential challenges in the U.S., which has been a significant market for the original Switch. Furukawa raised concerns about the impact of Trump’s tariffs on the Switch 2 and American consumers' spending power. He mentioned that the tariff policy could affect Nintendo’s profits by "tens of billions of yen," saying, "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 labeled Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," citing uncertainties related to tariffs. Despite these concerns, demand for the Switch 2 remains robust. After a delay due to tariffs, pre-orders for the Switch 2 commenced on April 24, with the console priced at $449.99. The response was overwhelming. Nintendo has also cautioned U.S. customers who applied for a Switch 2 pre-order from the My Nintendo Store that release date delivery is not guaranteed due to high demand.

For further details, check out IGN's Nintendo Switch 2 pre-order guide.

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