Nintendo President Warns U.S. Tariffs Could Impact Switch 2 Demand Amid Rising Living Costs

Nintendo has recently unveiled its financial results for the 2025 fiscal year, spanning April 2024 to March 2025, and during the online press conference on May 8, President Shuntaro Furukawa discussed the high expectations for the upcoming Switch 2, as well as potential challenges like U.S. tariffs that could affect its success. As the launch date of June 5 nears, the demand for the Switch 2 is soaring, with Nintendo's official pre-order lotteries in Japan being particularly oversubscribed. The company is ramping up production efforts to meet this demand and is forecasting sales of 15 million Switch 2 units and 45 million software units worldwide in the 2026 fiscal year (April 2025 to March 2026).

Nintendo anticipates that the Switch 2 will significantly boost its overall sales for FY2026 by 63.1% to 1.9 trillion yen (approximately $13.04 billion USD) and increase final profits by 7.6% to 300 billion yen (approximately $2.05 billion USD). However, Furukawa expressed concerns about the U.S. market and the profitability of the Switch 2 due to its higher price compared to its predecessor. Despite the enhanced features and improvements, the increased cost presents significant challenges.

"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 in its first year, and the Switch 2 is projected to reach at least 15 million units. Furukawa highlighted the potential impact of Trump's tariffs on the Switch 2's profitability, estimating a hit of "tens of billions of yen" to Nintendo's profits. He also noted that rising prices of daily necessities due to tariffs could reduce consumer spending power, potentially affecting demand for the console. If Nintendo were to raise the price of the Switch 2 in response to tariffs, it might further decrease demand.

Nintendo Switch 2 System and Accessories Gallery

View 91 Images

Analysts have described Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," given the uncertainty surrounding tariffs. Despite these concerns, the demand for the Switch 2 remains exceptionally high. After a delay due to tariffs, pre-orders for the Switch 2 opened on April 24 at a fixed price of $449.99 and were met with overwhelming response. Nintendo has also issued a warning to U.S. customers who pre-ordered through the My Nintendo Store, stating that release date delivery is not guaranteed due to the high demand.

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