Nintendo recently unveiled its financial outcomes for the fiscal year 2025 (spanning April 2024 to March 2025), with President Shuntaro Furukawa providing further insights during an online press conference on May 8. The focus was on the high expectations surrounding the upcoming Nintendo Switch 2, alongside potential challenges, such as U.S. tariffs, that might affect its success.
As the launch date of June 5 draws near, the demand for the Switch 2 is soaring, particularly evident in Japan where Nintendo's official pre-order lotteries have been significantly oversubscribed. In response, Nintendo is ramping up production efforts to meet this demand, forecasting sales of 15 million Switch 2 units and 45 million software units worldwide for the fiscal year 2026 (April 2025 to March 2026).
The company is optimistic that the Switch 2's launch 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 Switch 2's future profitability. As a next-generation console boasting enhanced features and improvements, the Switch 2 comes with a higher price tag than its predecessor. Furukawa noted, "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, and Nintendo is forecasting at least 15 million units for the Switch 2.
The "corresponding hurdles" include potential issues in the U.S., Nintendo's largest market for the original Switch. Furukawa highlighted the impact of Trump's tariffs on the Switch 2 and American consumers' purchasing power, stating that the tariff policy could affect Nintendo's profits by "tens of billions of yen." He added, "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 15 million Switch 2 sales forecast as "conservative," citing the uncertainty surrounding tariffs. Nevertheless, the demand for the Switch 2 appears to be substantial. Following a delay caused by tariffs, pre-orders commenced on April 24 with the console priced at $449.99, and the response was overwhelming. Nintendo has also warned U.S. customers who applied for a Switch 2 pre-order through the My Nintendo Store that release date delivery is not guaranteed due to the high demand.
For more information on securing a Nintendo Switch 2, check out IGN's comprehensive Nintendo Switch 2 pre-order guide.
