Nintendo has recently unveiled its financial results for the fiscal year 2025 (April 2024 to March 2025). In an online press conference on May 8, President Shuntaro Furukawa discussed the company's high expectations for the upcoming Switch 2, while also addressing potential challenges, including U.S. tariffs, that could impact its success.
With the Switch 2 set to launch on June 5, demand for the new console is surging, particularly in Japan where Nintendo's official pre-order lotteries are massively oversubscribed. To meet this demand, Nintendo is ramping up production and has set ambitious targets for the fiscal year 2026 (April 2025 to March 2026), forecasting 15 million units in hardware sales and 45 million units in software sales worldwide.
The launch of the Switch 2 is expected to significantly boost Nintendo's overall sales in FY2026, with projections of a 63.1% increase to 1.9 trillion yen (approximately $13.04 billion USD) and a 7.6% rise in final profits 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. The new console, which comes with enhanced features and improvements over the original, is priced higher. Furukawa acknowledged the challenges, stating, "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 targeting at least 15 million units for the Switch 2.
These challenges include potential impacts from U.S. tariffs, which could affect Nintendo's profits significantly. Furukawa noted that the tariffs might reduce consumer spending power, stating, "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 unit sales forecast for the Switch 2 as "conservative," given the uncertainty surrounding the tariffs. Despite these concerns, the demand for the Switch 2 remains strong. Following a delay due to tariffs, pre-orders opened on April 24, with the console priced at $449.99. The response was overwhelming, and Nintendo has warned U.S. customers applying for pre-orders through the My Nintendo Store that release date delivery is not guaranteed due to high demand.
For more information on securing your Switch 2, check out IGN's Nintendo Switch 2 pre-order guide.
