Nintendo recently unveiled its financial outcomes for the 2025 fiscal year (April 2024 to March 2025) during an online press conference on May 8. President Shuntaro Furukawa provided insights into the company's high hopes for the upcoming Switch 2, as well as the potential challenges, such as U.S. tariffs, that could affect its success.
As the eagerly awaited June 5 launch date nears, the demand for the Switch 2 is soaring, with Nintendo's official pre-order lotteries being overwhelmingly oversubscribed, particularly in Japan. In response, Nintendo is "working to strengthen their production to meet demand." The company is forecasting an impressive 15 million units in hardware sales and 45 million units in software sales worldwide for the 2026 fiscal year (April 2025 to March 2026).
Moreover, Nintendo anticipates that the launch of 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 future profitability of the Switch 2. As a next-generation console with enhanced features and improvements over the original, the Switch 2 comes with a higher price tag, presenting certain challenges. Furukawa stated, "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, while the Switch 2 is projected to sell at least 15 million units).
These "corresponding hurdles" include worries about the U.S., which has been Nintendo's largest market for the Switch 1. President Furukawa highlighted the potential impact of Trump's tariffs on the Switch 2 and the spending power of American consumers. During the online press conference, he noted that the tariff policy could affect Nintendo's profits by "tens of billions of yen." He further elaborated, "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 forecast of 15 million Switch 2 sales as "conservative," considering the uncertainty surrounding tariffs. Despite these challenges, the demand for the Switch 2 appears to be substantial. Following a delay due to tariffs, Nintendo Switch 2 pre-orders opened on April 24, with the console priced at $449.99, and they were met with overwhelming response. Additionally, Nintendo has cautioned U.S. customers who applied for a Switch 2 pre-order through the My Nintendo Store that delivery on the release date is not guaranteed due to extremely high demand.
For more details, check out IGN's Nintendo Switch 2 pre-order guide.
