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

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

Author : Connor Update:Jun 20,2025

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, while also acknowledging potential challenges—including the impact of U.S. tariffs.

As the June 5 launch date draws closer, anticipation for the Switch 2 continues to grow. Demand remains exceptionally high, with Nintendo's official pre-order lotteries experiencing overwhelming participation—particularly in Japan. In response, Nintendo is ramping up production capabilities to meet consumer interest and has projected global hardware sales of 15 million units and software sales of 45 million units during the 2026 fiscal year (April 2025–March 2026).

Beyond unit sales, Nintendo anticipates a strong market response to the Switch 2, forecasting a 63.1% increase in total FY2026 sales to 1.9 trillion yen (approximately $13.04 billion USD), alongside a 7.6% rise in net profit to 300 billion yen (around $2.05 billion USD).

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Despite these optimistic projections, Furukawa expressed concerns regarding the U.S. market and the broader implications for profitability. As a next-generation console featuring enhanced performance and notable improvements over its predecessor, the Switch 2 carries a higher price point than the original Switch.

“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 stated, as reported by the Yomiuri Shimbun. The original Switch sold 15.05 million units within its first year, and Nintendo expects the Switch 2 to reach at least that figure.

Among the key challenges highlighted were uncertainties surrounding the U.S. market, historically Nintendo’s largest consumer base for the original Switch. Furukawa specifically noted the potential effects of U.S. tariff policies under former President Trump, which could reduce consumer spending power and ultimately affect Switch 2 adoption.

During the press briefing, he emphasized that the tariff policy could impact 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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While analysts have described Nintendo's initial 15 million unit forecast as “conservative,” largely due to ongoing uncertainty around trade policies, early signs suggest robust consumer interest. Following a brief delay tied to tariff-related adjustments, Switch 2 pre-orders officially opened on April 24, with the console priced at $449.99—and the response was exactly what you'd expect.

In light of the overwhelming demand, Nintendo has issued a cautionary note 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.

For more information on securing your copy, check out IGN's Nintendo Switch 2 pre-order guide.

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