Nintendo boss warns tariffs could hurt Switch 2 sales

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Nintendo has officially disclosed its financial results for fiscal year 2025 (April 2024 - March 2025). During the May 8 online press conference, company president Shuntaro Furukawa elaborated on Nintendo's ambitious vision for the Switch 2 while acknowledging potential challenges - including the impact of U.S. tariffs on the new console's success.

Strong Market Demand Meets Production Challenges

With the June 5 launch date approaching, Switch 2 demand continues exceeding expectations. Nintendo's pre-order lotteries have been overwhelmed by applications, particularly in the Japanese market. The company confirms it's "ramping up production to meet projected demand," targeting 15 million hardware units and 45 million software units sold globally during fiscal year 2026 (April 2025 - March 2026).

Financial Projections and Market Concerns

Nintendo anticipates the Switch 2 launch will drive a 63.1% year-over-year sales increase to ¥1.9 trillion ($13.04 billion) and boost profits by 7.6% to ¥300 billion ($2.05 billion) in FY2026. However, Furukawa expressed cautious optimism regarding the U.S. market, citing pricing challenges for the enhanced console.

"While the premium features justify a higher price point, this creates market adoption challenges," Furukawa stated in the Yomiuri Shimbun interview. "We're targeting launch performance comparable to the original Switch." (The first Switch sold 15.05 million units in its debut year, matching current Switch 2 projections.)

Tariff Impact and Consumer Spending Concerns

The U.S. tariff policy emerges as Nintendo's primary concern, potentially reducing profits by "tens of billions of yen." Furukawa explained the dual threat: "Rising essential goods prices may reduce disposable income for gaming hardware. Any price adjustment to offset tariffs could negatively affect demand."

Pre-Order Challenges and Market Response

Despite tariff-related delays, Switch 2 pre-orders launched successfully on April 24 at $449.99. Nintendo has cautioned U.S. customers through its My Nintendo Store that overwhelming demand may delay deliveries for some pre-orders. Industry analysts characterize Nintendo's sales forecast as conservative given the tariff uncertainties, while acknowledging the apparent strong market appetite for the new system.

For complete pre-order information, consult IGN's Nintendo Switch 2 pre-order guide.