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

May 25,25

Nintendo has unveiled its financial results for the 2025 fiscal year (April 2024 to March 2025), and during an online press conference on May 8, President Shuntaro Furukawa shared insights into the company's high hopes for the Switch 2, as well as potential challenges, including U.S. tariffs. As the eagerly awaited launch date of June 5 draws near, demand for the Switch 2 is surging, with Nintendo's official pre-order lotteries in Japan seeing overwhelming interest. To meet this demand, Nintendo is ramping up production and forecasting sales of 15 million Switch 2 units and 45 million software units worldwide for the 2026 fiscal year (April 2025 to March 2026).

The Japanese gaming giant is optimistic that the Switch 2's launch will significantly boost its overall sales for FY2026 by 63.1%, targeting 1.9 trillion yen (approximately $13.04 billion USD), and increase final profits by 7.6% to 300 billion yen (approximately $2.05 billion USD).

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However, Furukawa expressed concerns about the U.S. market and the Switch 2's future profitability. With enhanced features and improvements, the Switch 2 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 quoted in the Yomiuri Shimbun. The original Switch sold 15.05 million units in its first year, and the Switch 2 is projected to reach at least 15 million units.

These “corresponding hurdles” include potential issues in the U.S., Nintendo's largest market for the original Switch. Furukawa highlighted concerns about the impact of Trump's tariffs on the Switch 2 and American consumers' purchasing power. 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.”

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 tariff-related uncertainties. Despite these challenges, demand for the Switch 2 remains robust. Following a delay due to tariffs, pre-orders commenced on April 24, with the console priced at $449.99, and they were met with expected enthusiasm. Nintendo has also issued a warning to U.S. customers who pre-ordered via the My Nintendo Store that release date delivery is not guaranteed due to high demand.

For more information, check out IGN's Nintendo Switch 2 pre-order guide.

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