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

Nintendo recently unveiled its financial results for the fiscal year 2025, spanning April 2024 to March 2025. During an online press conference on May 8, President Shuntaro Furukawa provided insights into the company's high hopes for the upcoming Switch 2, as well as potential challenges, including U.S. tariffs.

As the launch date of June 5 draws near, demand for the Switch 2 remains robust, with Nintendo's pre-order lotteries in Japan experiencing overwhelming demand. Nintendo is actively "working to strengthen their production to meet demand," and they are projecting sales of 15 million units of Switch 2 hardware and 45 million units of software globally for the fiscal year 2026 (April 2025 to March 2026).

The Japanese gaming giant is optimistic that the Switch 2's launch will significantly enhance its overall sales for FY2026, with a projected increase of 63.1% to 1.9 trillion yen (approximately $13.04 billion USD) and a rise in final profits by 7.6% 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. Given its advanced features and enhancements over the original Switch, the Switch 2 comes with a higher price tag. Furukawa noted in an interview with the Yomiuri Shimbun, "The unit sales price is high, and there are corresponding hurdles, however we are aiming for a launch on par with (the first) Switch." The original Switch sold 15.05 million units in its first year, and the Switch 2 is forecasted to sell at least 15 million units.

These "corresponding hurdles" include potential issues in the U.S., which has been Nintendo's largest market for the original Switch. Furukawa highlighted concerns about the impact of Trump's tariffs on the Switch 2 and the spending power of American consumers. He estimated 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 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 commenced on April 24, with the console priced at $449.99, and they were met with significant interest. Nintendo has also issued a warning to U.S. customers who pre-ordered through the My Nintendo Store, indicating that delivery on the release date is not guaranteed due to high demand.

For more details on securing a Nintendo Switch 2, check out IGN's Nintendo Switch 2 pre-order guide.