Home News Nintendo President Warns U.S. Tariffs Could Hurt Switch 2 Sales

Nintendo President Warns U.S. Tariffs Could Hurt Switch 2 Sales

Author : Adam May 14,2025

Nintendo has recently unveiled its financial results for the fiscal year 2025 (April 2024-March 2025), and during the online press conference on May 8, President Shuntaro Furukawa provided detailed insights into the company's high expectations for the Switch 2, as well as the potential challenges, including U.S. tariffs, that could affect its success.

With the Switch 2's launch scheduled for June 5, demand is skyrocketing, particularly evident from the overwhelming response to Nintendo's official pre-order lotteries in Japan. In response, Nintendo is intensifying its production efforts to meet this demand. The company forecasts selling 15 million units of the Switch 2 hardware and 45 million units of software worldwide during the fiscal year 2026 (April 2025 to March 2026).

Nintendo also anticipates that the launch of the Switch 2 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).

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However, Furukawa expressed concerns about the U.S. market and the future profitability of the Switch 2. As a next-generation console with enhanced features and improvements, the Switch 2 comes with a higher price tag 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 Nintendo is targeting at least 15 million units for the Switch 2.

These "corresponding hurdles" include concerns about the U.S., which has been Nintendo's largest market for the original Switch. Furukawa highlighted the potential impact of Trump's tariffs on the Switch 2 and the spending power of American consumers. 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."

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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, the demand for the Switch 2 appears to be immense. 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 an overwhelming response. 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 the high demand.

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