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

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

by Caleb May 16,2025

Nintendo has recently unveiled its financial results for the 2025 fiscal year, covering April 2024 to March 2025. During the online press conference on May 8, President Shuntaro Furukawa shared insights into the company's high expectations for the upcoming Switch 2, while also highlighting potential challenges such as U.S. tariffs.

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

Nintendo is optimistic that the Switch 2's launch will significantly boost its overall sales for FY2026 by 63.1% to 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).

Despite these high expectations, Furukawa expressed concerns about the U.S. market and the Switch 2's profitability. As a next-generation console with enhanced features and improvements, 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 forecasted to achieve at least 15 million units.

The "corresponding hurdles" include concerns about the U.S., Nintendo's largest market for the original Switch. Furukawa highlighted potential impacts of Trump's tariffs on the Switch 2 and American consumers' spending power. He stated that the tariff policy could reduce Nintendo's profits by "tens of billions of yen." Furukawa added, "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 15 million Switch 2 sales forecast as "conservative," considering the uncertainty surrounding tariffs. Despite these concerns, the demand for the Switch 2 remains incredibly high. Following a delay due to tariffs, pre-orders for the Switch 2 opened on April 24 with the console priced at $449.99, and they were met with overwhelming enthusiasm. Nintendo has also issued a warning to U.S. customers who applied for a Switch 2 pre-order from the My Nintendo Store, stating that release date delivery is not guaranteed due to high demand.

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