Nintendo has unveiled its financial results for fiscal year 2025 (April 2024-March 2025), providing new insights about the highly anticipated Switch 2 during President Shuntaro Furukawa's May 8 online press conference. While expressing strong confidence in the next-generation console's potential, Furukawa also acknowledged challenges including upcoming U.S. tariffs.
As the June 5 launch approaches, Switch 2 demand continues surging globally, with Nintendo's official pre-order lotteries receiving overwhelming responses – particularly in Japan. The company confirms aggressive production scaling efforts to meet demand, projecting worldwide Switch 2 hardware sales of 15 million units and 45 million software units during fiscal year 2026 (April 2025-March 2026).
The Kyoto-based gaming giant anticipates the Switch 2 launch will drive FY2026 total sales up 63.1% to ¥1.9 trillion (~$13.04 billion) and operating profit up 7.6% to ¥300 billion (~$2.05 billion).
However, Furukawa revealed significant concerns about U.S. market conditions impacting Switch 2 profitability. The upgraded console's enhanced features and technical capabilities result in higher manufacturing costs versus its predecessor.
"While our premium pricing presents challenges, we remain committed to matching the original Switch's launch success," Furukawa told Yomiuri Shimbun. (The Switch sold 15.05 million first-year units – matching Nintendo's Switch 2 projections).
These market challenges include potential fallout from U.S. tariff policies in Nintendo's largest Switch market. Furukawa expressed concerns about Trump-era tariffs potentially impacting both Switch 2 pricing and American consumer spending power.
During the conference, Furukawa estimated tariffs could reduce profits by "tens of billions of yen," explaining: "Rising costs for essentials like food may decrease discretionary spending on gaming hardware. Any retail price adjustments to offset tariffs could negatively impact demand."
Nintendo Switch 2 System and Accessories Gallery
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Industry analysts describe Nintendo's 15 million unit forecast as "conservative" given tariff uncertainties. Despite potential challenges, demand appears exceptionally strong. After delaying due to tariff concerns, Nintendo launched Switch 2 pre-orders April 24 at $449.99 – selling out instantly across retailers. The company has since warned U.S. My Nintendo Store customers that launch day deliveries aren't guaranteed due to unprecedented demand.
For complete pre-order details, see IGN's Nintendo Switch 2 pre-order guide.
