Nintendo fears US tariffs may hit Switch 2 sales

Nintendo has unveiled its financial results for fiscal year 2025 (April 2024-March 2025), with President Shuntaro Furukawa providing key insights during the May 8 online briefing about both the Switch 2's promising outlook and potential challenges – including U.S. tariff impacts.

As the June 5 launch nears, Switch 2 demand continues exceeding expectations, evidenced by massively oversubscribed pre-order lotteries particularly in Japan. Nintendo confirms it's "ramping up production to meet demand," projecting global sales of 15 million Switch 2 units and 45 million software titles for FY2026 (April 2025-March 2026).

The Kyoto-based gaming giant anticipates Switch 2's launch will drive FY2026 sales up 63.1% to ¥1.9 trillion (~$13.04 billion) with profits rising 7.6% to ¥300 billion (~$2.05 billion).

However, Furukawa expressed concerns about profitability and U.S. market challenges. As a next-generation console boasting significant upgrades over its predecessor, the Switch 2 carries a higher price point.

"While the premium pricing presents hurdles, we're targeting launch sales comparable to the original Switch," Furukawa stated in the Yomiuri Shimbun. (The first Switch sold 15.05 million units year one, matching Switch 2's forecast).

The identified challenges include potential U.S. tariff impacts – Nintendo's largest Switch 1 market. Furukawa specifically addressed concerns about Trump-era tariffs affecting both production costs and American consumers' purchasing power.

The briefing revealed tariffs could dent Nintendo's profits by "tens of billions of yen." Furukawa explained: "If tariffs increase essentials like food prices, disposable income for gaming hardware drops. A Switch 2 price adjustment would likely reduce demand."

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Industry analysts describe Nintendo's 15-million-unit forecast as "conservative," citing tariff uncertainties. Despite these concerns, demand appears overwhelming. Following a tariff-related delay, Switch 2 pre-orders launched April 24 at $449.99 – selling out instantly. Meanwhile, Nintendo notified U.S. customers that My Nintendo Store pre-orders may not guarantee launch-day delivery due to unprecedented demand.

For complete purchasing details, visit IGN's official Switch 2 pre-order guide.