Nintendo warns tariffs could hit Switch 2 sales

Nintendo has disclosed its financial results for fiscal year 2025 (April 2024-March 2025), with President Shuntaro Furukawa addressing both ambitious projections and potential challenges for the upcoming Switch 2 during their May 8 online briefing. Among these obstacles are significant U.S. tariff implications.

As the June 5 launch nears, unprecedented demand continues for the Switch 2, with Nintendo's pre-order lottery system overwhelmed by applications particularly in Japan. The company reports intensive efforts to scale up production, targeting 15 million hardware units and 45 million software units sold globally during fiscal year 2026 (April 2025-March 2026).

The Kyoto-based gaming titan anticipates the Switch 2 launch will propel total FY2026 sales up 63.1% to ¥1.9 trillion ($13.04B USD) while increasing net profits 7.6% to ¥300 billion ($2.05B USD).

However, Furukawa expressed specific concerns regarding U.S. market dynamics and the Switch 2's profitability outlook. The enhanced next-generation console, featuring substantial upgrades over its predecessor, carries a higher price point.

"While the premium pricing presents challenges, we're targeting launch performance comparable to the original Switch," Furukawa told the Yomiuri Shimbun. (The Switch sold 15.05 million units in its debut year, matching Switch 2's first-year projection).

These challenges include U.S. market uncertainties - historically Nintendo's strongest territory for Switch sales. Furukawa specifically cited potential impacts from tariff policies under consideration and their effect on American consumer spending power.

During the briefing, Furukawa projected "billions of yen" in profit impact from potential tariffs, noting: "Rising essentials costs could reduce disposable income for gaming hardware. Price adjustments would likely dampen demand."

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Industry analysts describe Nintendo's 15 million unit projection as "conservative" given tariff uncertainties. Despite these concerns, extraordinary demand persists. Following tariff-related delays, April 24 pre-orders launched at $449.99 with predictable frenzy. Meanwhile, Nintendo cautioned U.S. My Nintendo Store customers that overwhelming demand may delay launch day deliveries.

For comprehensive pre-order details, visit IGN's Nintendo Switch 2 pre-order guide.