Nintendo Warns U.S. Tariffs Could Impact Switch 2 Demand

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 highlighting potential challenges, including U.S. tariffs.

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

The Japanese gaming giant also anticipates a 63.1% surge in overall sales for FY2026, reaching 1.9 trillion yen (approximately $13.04 billion USD), with profits rising 7.6% to 300 billion yen (about $2.05 billion USD).

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

“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 projected to hit at least 15 million units).

These challenges include concerns about the U.S., Nintendo’s largest market for the original Switch. Furukawa highlighted potential disruptions from Trump’s tariffs, which could affect American consumers’ purchasing power.

During the press conference, Furukawa noted that tariffs could reduce Nintendo’s profits by “tens of billions of yen.” He added: “If tariffs drive up costs for essentials like food, consumers may have less to spend on gaming consoles. Raising the Switch 2’s price to offset tariffs could 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 robust. After a tariff-related delay, Switch 2 pre-orders opened on April 24 at $449.99, performing as strongly as anticipated. Meanwhile, Nintendo has cautioned U.S. customers pre-ordering through the My Nintendo Store that delivery by the release date is not guaranteed due to high demand.

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