Nintendo has recently unveiled its financial results for the fiscal year 2025, spanning from April 2024 to March 2025. In an insightful online press conference held on May 8, President Shuntaro Furukawa provided further details on the company's high expectations for the upcoming Switch 2, alongside potential challenges, including the impact of U.S. tariffs.
As the launch date of June 5 draws near, the demand for the Switch 2 is skyrocketing, particularly evident in Japan where Nintendo's official pre-order lotteries have seen overwhelming subscriptions. To meet this soaring demand, Nintendo is ramping up production efforts. The company is forecasting an ambitious target of 15 million units for Switch 2 hardware sales and 45 million units for software sales worldwide during the 2026 fiscal year (April 2025 to March 2026).
The launch of the Switch 2 is expected to significantly boost Nintendo's overall sales for FY2026, with projections indicating a 63.1% increase to 1.9 trillion yen (approximately $13.04 billion USD) and a 7.6% rise in final profits to 300 billion yen (approximately $2.05 billion USD).
However, Furukawa expressed concerns about the U.S. market and the future profitability of the Switch 2. As a next-generation console boasting enhanced features and improvements over its predecessor, the Switch 2 comes with a higher price tag. Furukawa acknowledged the pricing challenges, stating, “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 original Switch sold 15.05 million units in its first year, and the Switch 2 is forecasted to achieve at least 15 million units.
These "corresponding hurdles" include concerns about the U.S., Nintendo's largest market for the original Switch. Furukawa highlighted the potential impact of Trump's tariffs on both the Switch 2 and the spending power of American consumers. During the press conference, he mentioned 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 related to tariffs. Despite these concerns, the demand for the Switch 2 appears to be robust. Following a delay due to tariff issues, pre-orders for the Switch 2 began on April 24, with the console's price set at $449.99, and they were met with exceptional demand. Nintendo has also issued a warning to U.S. customers who applied for a Switch 2 pre-order through the My Nintendo Store, stating that release date delivery is not guaranteed due to the high demand.
For those interested in securing a Switch 2, check out IGN's comprehensive Nintendo Switch 2 pre-order guide.
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