Nintendo has recently unveiled its financial results for the fiscal year 2025 (April 2024-March 2025), and during the online press conference on May 8, President Shuntaro Furukawa discussed the company's high expectations and potential challenges for the upcoming Switch 2. With the launch date set for June 5, the demand for the Switch 2 is soaring, particularly in Japan, where pre-order lotteries are oversubscribed. Nintendo is ramping up production to meet this demand and is 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 anticipates 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 its final profits by 7.6% to 300 billion yen (approximately $2.05 billion USD).
Despite the optimism, Furukawa expressed concerns about the U.S. market and the Switch 2's profitability. The new console, boasting enhanced features and improvements over the original, comes with a higher price tag. 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 Switch 1 sold 15.05 million units in its first year, and Nintendo is targeting at least 15 million units for the Switch 2.
These "corresponding hurdles" include potential impacts from U.S. tariffs, which could affect Nintendo's profits by "tens of billions of yen." Furukawa highlighted the risk of reduced consumer spending on game consoles if tariffs increase the prices of daily necessities. He also mentioned that adjusting the Switch 2's price in response to tariffs might reduce demand.
Analysts have labeled Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," given the uncertainties around tariffs. Despite these challenges, the demand for the Switch 2 remains robust. After a delay caused by tariffs, pre-orders opened on April 24 with the console priced at $449.99, and they were met with overwhelming demand. Nintendo has warned U.S. customers who pre-ordered through the My Nintendo Store that release date delivery is not guaranteed due to high demand.
For more information on securing a Switch 2, check out IGN's Nintendo Switch 2 pre-order guide.
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