Nintendo Chief Highlights U.S. Tariff Risks to Switch 2 Sales

Nintendo recently announced its financial results for the 2025 fiscal year (April 2024-March 2025). During an online press conference on May 8, President Shuntaro Furukawa expressed optimism about the Switch 2 while addressing potential challenges, including U.S. tariffs.

With the June 5 launch nearing, excitement for the Switch 2 is soaring, evidenced by oversubscribed pre-order lotteries, particularly in Japan. Nintendo is ramping up production to meet this demand, projecting 15 million Switch 2 units and 45 million software units sold globally in the 2026 fiscal year (April 2025 to March 2026).

The company also anticipates a significant boost from the Switch 2 launch, forecasting a 63.1% increase in overall sales to 1.9 trillion yen (approximately $13.04 billion USD) and a 7.6% rise in profits to 300 billion yen (about $2.05 billion USD) for FY2026.

Furukawa, however, voiced concerns about the U.S. market and the Switch 2's profitability. As a next-generation console with enhanced features and upgrades, the Switch 2 carries a higher price tag than its predecessor.

“The higher unit price presents challenges, but we aim to match the original Switch’s launch success,” Furukawa said, as reported by the Yomiuri Shimbun. (The original Switch sold 15.05 million units in its first year, with Switch 2 expected to hit at least 15 million units).

Among these challenges are concerns about the U.S., Nintendo’s largest market for the original Switch. Furukawa highlighted potential impacts from U.S. tariffs proposed by President Trump, which could affect consumer spending power.

During the press conference, Furukawa noted that tariffs could reduce Nintendo’s profits by “tens of billions of yen.” He added: “If tariffs raise the cost of essentials like food, consumers may have less to spend on gaming consoles. Adjusting the Switch 2’s price to offset tariffs could also dampen demand.”

Nintendo Switch 2 System and Accessories Gallery

Analysts called Nintendo’s 15 million unit sales forecast for the Switch 2 “cautious,” citing tariff uncertainties. Despite these concerns, demand remains strong. Pre-orders for the Switch 2, delayed due to tariffs, began on April 24 at a fixed price of $449.99, meeting high expectations. Nintendo has cautioned U.S. customers pre-ordering through the My Nintendo Store that delivery by the release date is not guaranteed due to overwhelming demand.

Visit IGN’s Nintendo Switch 2 pre-order guide for more details.