Nintendo has unveiled its financial results for fiscal year 2025 (April 2024-March 2025), with President Shuntaro Furukawa providing key insights during the May 8 online briefing about the company's significant expectations for Switch 2 and potential challenges - particularly concerning U.S. tariffs.
As the June 5 launch approaches, pre-order demand continues surging globally, with Nintendo's official lottery systems experiencing overwhelming response particularly in Japan. The company confirms it's "ramping up production to meet demand," projecting Switch 2 hardware sales of 15 million units and software sales reaching 45 million copies worldwide during fiscal year 2026 (April 2025-March 2026).
The Japanese gaming titan anticipates Switch 2's launch will propel FY2026 overall sales by 63.1% to ¥1.9 trillion (~$13.04 billion) while boosting net profits 7.6% to ¥300 billion (~$2.05 billion).
However, Furukawa expressed concerns about U.S. market dynamics and Switch 2's profitability margins. As an advanced successor boasting significant hardware enhancements, the new console carries higher manufacturing costs than its predecessor.
"While the higher unit price presents challenges, we're targeting launch performance comparable to the original Switch," Furukawa stated in his Yomiuri Shimbun interview. (The inaugural Switch sold 15.05 million first-year units, while Switch 2 aims to match this with its 15 million forecast).
These financial considerations include significant worries about Nintendo's largest Switch 1 market - the United States. Furukawa specifically cited potential impacts from U.S. tariff policies and American consumers' discretionary spending power.
During the briefing, Furukawa warned tariffs could reduce Nintendo's profits by "tens of billions of yen," explaining: "If essential goods become more expensive due to tariffs, disposable income for gaming hardware decreases. Any Switch 2 price adjustments would risk dampening demand."
Nintendo Switch 2 System and Accessories Gallery
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Industry analysts describe Nintendo's 15 million sales projection as "conservative" given tariff uncertainties. Despite these challenges, unprecedented demand persists. Following initial tariff-related delays, Switch 2 pre-orders launched April 24 at $449.99 - with expected overwhelming response. Meanwhile, Nintendo has notified U.S. My Nintendo Store customers that release-day deliveries aren't guaranteed due to extraordinary demand.
For complete details, consult IGN's comprehensive Nintendo Switch 2 pre-order guide.
