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

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

Author : Finn Update:May 27,2025

Nintendo has unveiled its financial results for the 2025 fiscal year (April 2024-March 2025), and during the online press conference on May 8, President Shuntaro Furukawa discussed the company's high hopes and potential challenges for the upcoming Switch 2. As the launch date of June 5 nears, demand for the Switch 2 is soaring, with Nintendo's official pre-order lotteries being massively oversubscribed, especially in Japan. Nintendo is actively working to ramp up production to meet this high demand, projecting Switch 2 hardware sales of 15 million units and software sales of 45 million 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 overall sales for FY2026 by 63.1% to 1.9 trillion yen (approximately $13.04 billion USD) and 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. As a next-generation console with enhanced features and improvements over the original, the Switch 2 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. The Switch 1 sold 15.05 million units in its first year, while the Switch 2 is forecasted to sell at least 15 million units.

These "corresponding hurdles" include potential issues in the U.S., which has been Nintendo's largest market for the Switch 1. Furukawa raised concerns about the impact of Trump's tariffs on the Switch 2 and the spending power of American consumers. During the online press conference, he stated that the tariff policy could affect Nintendo's profits by "tens of billions of yen." He elaborated, "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 forecast of 15 million Switch 2 sales as "conservative," citing the uncertainty surrounding tariffs. Despite these concerns, demand for the Switch 2 remains incredibly high. Following a delay due to tariffs, Nintendo Switch 2 pre-orders went live on April 24, with the console priced at $449.99—and they were met with overwhelming demand. Nintendo has also issued a warning to U.S. customers who applied for a Switch 2 pre-order from the My Nintendo Store, indicating that release date delivery is not guaranteed due to the intense demand.

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

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