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

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

Author : Owen May 15,2025

Nintendo has unveiled its financial results for the fiscal year 2025 (April 2024 to March 2025), and during the online press conference on May 8, President Shuntaro Furukawa shared insights into the company's high expectations for the upcoming Switch 2, as well as potential challenges, including the impact of U.S. tariffs. As the launch date of June 5 nears, demand for the Switch 2 is soaring, with Nintendo's official pre-order lotteries seeing overwhelming interest, particularly in Japan. The company is actively enhancing production capabilities to meet this demand, forecasting sales of 15 million units of Switch 2 hardware and 45 million units of software worldwide for the fiscal year 2026 (April 2025 to March 2026).

Nintendo 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. The new console, featuring enhanced capabilities and improvements, comes with a higher price tag than its predecessor. "The unit sales price is high, and there are corresponding hurdles, however we are aiming for a launch on par with (the first) Switch," Furukawa stated, as reported by the Yomiuri Shimbun. The original Switch sold 15.05 million units in its first year, and 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 spending power of American consumers. During the conference, he noted that the tariff policy could affect Nintendo's profits by "tens of billions of yen." He further explained, "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," citing uncertainties around tariffs. Despite these concerns, the demand for the Switch 2 appears to be substantial. Following a delay due to tariffs, pre-orders opened on April 24 with the console priced at $449.99, and they were met with the expected high demand. Nintendo has also issued a warning to U.S. customers who pre-ordered through the My Nintendo Store, stating that delivery on the release date is not guaranteed due to the high demand.

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

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