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

Nintendo has just unveiled its financial results for the 2025 fiscal year, covering the period from April 2024 to March 2025. During the company’s online press conference held on May 8, Nintendo President Shuntaro Furukawa provided further insight into the company's strategic outlook for the upcoming Switch 2 console, while also acknowledging potential challenges—most notably, U.S. tariffs.

As the June 5 launch date draws closer, anticipation for the Switch 2 continues to grow at an impressive pace. This is particularly evident in Japan, where official pre-order lotteries have seen overwhelming participation. In response to surging demand, Nintendo is actively working to ramp up production capacity and has set ambitious targets for the 2026 fiscal year (April 2025–March 2026). The company forecasts global hardware sales of 15 million units and software sales reaching 45 million units.

Beyond unit sales, Nintendo is optimistic that the Switch 2 launch will significantly boost overall revenue. It anticipates a 63.1% increase in FY2026 sales, amounting to 1.9 trillion yen (approximately $13.04 billion USD), with final profits expected to rise by 7.6% to 300 billion yen (around $2.05 billion USD).

However, during the press briefing, Furukawa expressed concerns regarding the U.S. market and the long-term profitability of the Switch 2. As a next-generation console featuring enhanced capabilities and performance improvements over the original Switch, the Switch 2 comes with a higher manufacturing cost—and subsequently, a higher retail price.

“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 noted, as reported by the *Yomiuri Shimbun*. The original Switch sold 15.05 million units in its debut year, and Nintendo expects the Switch 2 to match or exceed that figure.

These hurdles include economic uncertainties in the United States—the largest market for the original Switch. Furukawa specifically highlighted the potential impact of U.S. tariff policies under the Trump administration, which could negatively affect consumer spending and Nintendo’s bottom line.

During the presentation, he warned that these tariffs may reduce Nintendo’s annual profits by “tens of billions of yen.” He further explained that if tariffs lead to increased prices on everyday goods like food, consumers may have less disposable income to spend on gaming devices. Adjusting the Switch 2’s price accordingly could, in turn, dampen demand.

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Analysts have described Nintendo’s 15 million unit sales forecast as “conservative,” citing ongoing uncertainty surrounding trade policies. Despite these concerns, early demand for the Switch 2 remains strong. After a brief delay linked to tariff-related adjustments, pre-orders officially launched on April 24, with the console priced at $449.99. And as expected, demand far outpaced supply almost immediately.

In light of this, Nintendo has issued a notice to U.S. customers who applied for a Switch 2 pre-order via the My Nintendo Store, stating that delivery by the release date cannot be guaranteed due to the extremely high volume of requests.

For more details on how to secure your copy, check out IGN's [Nintendo Switch 2 pre-order guide].