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

Nintendo has unveiled its financial results for the 2025 fiscal year, spanning from April 2024 to March 2025. In an online press conference held on May 8, Nintendo President Shuntaro Furukawa provided insights into the company's high expectations for the upcoming Switch 2, alongside potential challenges, including U.S. tariffs, that could affect its success.

As the launch date of June 5 draws near, the demand for the Switch 2 is soaring, particularly in Japan where Nintendo's official pre-order lotteries have been massively oversubscribed. In response, Nintendo is ramping up production efforts to meet this demand. The company is forecasting sales of 15 million units of Switch 2 hardware and 45 million units of software worldwide for the 2026 fiscal year (April 2025 to March 2026).

The launch of the Switch 2 is expected to significantly boost Nintendo's overall sales for FY2026, with projections of 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 new console, with its enhanced features and improvements, comes at a higher price point 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 is targeting at least 15 million units for the Switch 2.

These "corresponding hurdles" include potential impacts from U.S. tariffs, which have been a significant market for the Switch 1. Furukawa highlighted the possible effects of Trump's tariffs on the Switch 2 and the spending power of American consumers. He stated that the tariff policy could affect Nintendo's profits by "tens of billions of yen," adding, "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," citing the uncertainty surrounding U.S. tariffs. Despite these concerns, demand for the Switch 2 appears to be exceptionally high. Following a delay due to tariffs, pre-orders for the Switch 2 went live on April 24, with the console priced at $449.99, and they were met with overwhelming response. Nintendo has also issued a warning to U.S. customers who pre-ordered through 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.