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

May 27,25(3 months ago)
Nintendo President Warns U.S. Tariffs May Impact Switch 2 Demand

Nintendo has recently disclosed its financial outcomes for the fiscal year 2025 (spanning April 2024 to March 2025), and during an online press conference on May 8, President Shuntaro Furukawa elaborated on the company's high hopes for the upcoming Switch 2, as well as the challenges it might face, including potential impacts from U.S. tariffs.

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

Furthermore, Nintendo anticipates that the launch of the Switch 2 will significantly boost its overall sales for FY2026, aiming for 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).

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However, Furukawa expressed concerns about the U.S. market and the future profitability of the Switch 2. Given its advanced features and enhancements, the Switch 2 is priced higher 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 the Switch 2 is projected to match this figure.

These "corresponding hurdles" include potential issues in the U.S., which has been a key market for the original Switch. Furukawa highlighted the possible negative effects of Trump's tariffs on the Switch 2 and the purchasing power of American consumers. He stated that the tariff policy could impact 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."

Nintendo Switch 2 System and Accessories Gallery

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Analysts have described Nintendo's forecast of 15 million Switch 2 sales as "conservative," considering the uncertainty surrounding tariffs. Despite these concerns, the demand for the Switch 2 appears to be immense. Following a delay caused by tariffs, pre-orders for the Switch 2 opened on April 24, with the console's price set at $449.99, and they were met with overwhelming demand. Nintendo has also warned U.S. customers who pre-ordered via the My Nintendo Store that delivery on the release date is not guaranteed due to the high level of demand.

For more information, you can refer to IGN's Nintendo Switch 2 pre-order guide.

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