Nintendo President Warns Tariffs Could Undercut Switch 2 Sales Despite High Expectations
Nintendo is gearing up for one of its biggest product launches to date as the Nintendo Switch 2 prepares to hit shelves on June 5, 2025. However, while pre-orders are booming—especially in Japan—the company’s leadership is voicing concerns about potential U.S. tariffs and their impact on consumer spending power.
During a May 8 online press conference following Nintendo’s fiscal year 2025 financial results (April 2024–March 2025), company president Shuntaro Furukawa highlighted both the excitement around the new hybrid console and the economic pressures that may hinder its adoption in key markets like the United States.
Nintendo Forecasts 15 Million Switch 2 Units Sold in First Year
Nintendo is projecting 15 million units of the Switch 2 to be sold during its 2026 fiscal year (April 2025–March 2026), matching the success of the original Switch, which sold 15.05 million units in its debut year. Alongside this, the company is aiming for 45 million software units sold, underscoring expectations for a strong ecosystem of games and services.
Despite its higher MSRP of $449.99, the Switch 2’s pre-order demand has been overwhelming, with lottery-based pre-orders in Japan selling out rapidly. Nintendo has already issued a warning to U.S. customers who pre-ordered via the My Nintendo Store, indicating that release-day delivery is not guaranteed due to demand far exceeding supply.
U.S. Tariffs May Influence Console Pricing and Consumer Behavior
Furukawa emphasized that the tariff policy of the U.S. government, particularly under former President Donald Trump’s administration, poses a potential threat to Nintendo’s North American profits. The company estimates these tariffs could impact profits by “tens of billions of yen.”
“If prices of daily necessities like food increase due to tariffs, people will have less disposable income to spend on consoles,” Furukawa stated. He also acknowledged that adjusting the Switch 2’s price to compensate for tariffs could backfire and lead to a drop in consumer demand.
Nintendo’s Tariff Strategy: Balance Profitability and Market Penetration
According to a shareholders’ Q&A released on May 9, Nintendo is preparing for tariffs on hardware made in Vietnam (10%), Cambodia (10%), and China (145%). Most Switch 2 units destined for the U.S. market are manufactured in Vietnam, while some accessories, including amiibo, are produced in China.
Furukawa clarified that physical game software will not be affected by the tariffs since they do not fall under the announced categories. Nevertheless, the company’s core strategy is to absorb tariffs into pricing models while carefully monitoring consumer price tolerance and market momentum.
Conservative Forecasts Amid Market Uncertainty
Market analysts have described Nintendo’s 15 million-unit forecast as “conservative”, considering the current level of interest. Still, Nintendo prefers to err on the side of caution due to global economic volatility and the unpredictable influence of U.S. trade policies.
Despite declining sales for the original Switch console, Nintendo is aiming for a 63.1% boost in net sales in FY2026, reaching 1.9 trillion yen ($13.04 billion USD). Projected profits are also expected to grow by 7.6% to 300 billion yen ($2.05 billion USD)—driven primarily by Switch 2 momentum.
Nintendo’s 2025 Performance: Slower Year, But Optimistic Outlook
While the excitement around the Switch 2 dominates headlines, Nintendo’s fiscal year ending March 31, 2025, showed a dip in overall performance:
- Net sales and profits declined, though lifetime sales of the original Nintendo Switch hit 152.12 million units.
- A total of 155 million Switch games were sold in FY2025, marking a 22% year-over-year drop compared to the previous fiscal year.
Despite this, a few titles stood out:
- Super Mario Party Jamboree led sales with 7.48 million units sold.
- Mario Kart 8 Deluxe continued its legendary run, adding another 6.23 million units.
- The Legend of Zelda: Echoes of Wisdom reached 4 million units.
- Donkey Kong Country Returns HD and Mario & Luigi: Brothership sold 1 million and 1.6 million units, respectively.
Nintendo’s Market Cap Exceeds $100 Billion Ahead of Switch 2 Launch
In another major milestone, Nintendo’s market value has soared past $100 billion, fueled by investor confidence and the impending Switch 2 release. The hybrid console’s official system trailer and accessory gallery have drawn millions of views, helping to stoke anticipation further.
Will Tariffs Slow Down the Switch 2? Nintendo’s Success Depends on Pricing Power and Production
As the countdown to June 5 continues, Nintendo faces a delicate balancing act: sustaining global demand while navigating political and economic pressures, particularly in its largest market—the United States. While production capacity is being ramped up, and sales targets are optimistic, much hinges on how well the company can adapt to tariff-related cost pressures without alienating price-sensitive consumers.
With strong early demand and high expectations, the Switch 2 could replicate—if not surpass—the success of its predecessor. But the road ahead will require careful strategy, flexible pricing, and clear communication with fans across the globe.
Key Facts at a Glance: Nintendo Switch 2
- Release Date: June 5, 2025
- Price: $449.99
- Sales Forecast: 15 million consoles, 45 million games (FY2026)
- Main Markets: Japan, U.S., Europe
- Tariff Impact: Estimated tens of billions of yen in profit loss
- Top-Selling FY2025 Game: Super Mario Party Jamboree (7.48M units)
- Nintendo’s Market Cap: $100+ billion
Final Thoughts: Will Tariffs Derail the Switch 2’s Global Success?
Nintendo faces a perfect storm of economic challenges and consumer anticipation. The company’s ability to maintain affordability without compromising profits will be key to Switch 2’s success story.
Given the early demand and steady production pipeline, it’s likely that Nintendo will achieve—or even surpass—its sales targets. But in a world of rising costs and political unpredictability, the real test will come in the second half of 2025.