Nintendo President Worries U.S. Tariffs Could Hurt Switch 2 Sales: 'Rising Food Costs May Reduce Console Spending'
Nintendo has recently unveiled its financial results for the fiscal year 2025 (April 2024 to March 2025), and during an online press conference on May 8, President Shuntaro Furukawa shared insights into the company's high expectations and potential challenges for the upcoming Switch 2. As the launch date of June 5 nears, the demand for the Switch 2 is soaring, with Nintendo's official pre-order lotteries experiencing overwhelming demand, particularly in Japan. To meet this demand, Nintendo is ramping up production and forecasting sales of 15 million Switch 2 units and 45 million software units globally for the fiscal year 2026 (April 2025 to March 2026).
The Japanese gaming giant is optimistic that the launch of the Switch 2 will significantly boost its overall sales for FY2026 by 63.1%, aiming for a total of 1.9 trillion yen (approximately $13.04 billion USD) and an increase 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. The next-generation console, boasting enhanced features and improvements over its predecessor, comes with a higher price tag. 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. While the original Switch sold 15.05 million units in its first year, Nintendo forecasts 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 American consumer's spending 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 described Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," considering the uncertainty surrounding tariffs. Despite these challenges, the demand for the Switch 2 remains exceptionally high. Following a delay due to tariffs, pre-orders for the Switch 2 began on April 24, with the console priced at $449.99, and they were met with overwhelming response. Additionally, Nintendo has issued a warning to U.S. customers who pre-ordered through the My Nintendo Store, stating that release date delivery is not guaranteed due to the high demand.
For more information on securing a Switch 2, check out IGN's Nintendo Switch 2 pre-order guide.
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