Nintendo has recently unveiled its financial outcomes for the 2025 fiscal year, spanning from April 2024 to March 2025. During an online press conference held on May 8, Nintendo's President Shuntaro Furukawa elaborated on the company's optimistic outlook for the upcoming Switch 2, while also highlighting potential challenges, notably U.S. tariffs.

As the launch date of June 5 draws near, the demand for the Switch 2 is soaring. Pre-order lotteries set up by Nintendo have seen an overwhelming response, particularly in Japan. In response, Nintendo is intensifying its production efforts to meet this high demand. The company projects sales of 15 million Switch 2 units and 45 million units of software globally for the 2026 fiscal year, which runs from April 2025 to March 2026.

Nintendo anticipates that the Switch 2's launch will significantly enhance its overall sales for FY2026, targeting a 63.1% increase to reach 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's presentation also brought to light concerns about the U.S. market and the future profitability of the Switch 2. As a next-generation console with enhanced features and improvements over the original, the Switch 2 comes with a higher price tag. Furukawa remarked, “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 debut year, and Nintendo forecasts at least 15 million units for the Switch 2.

These “corresponding hurdles” include potential issues in the U.S., Nintendo's largest market for the original Switch. Furukawa expressed worries about the impact of Trump's tariffs on the Switch 2 and the purchasing power of American consumers. He noted that the tariff policy could reduce Nintendo's profits by "tens of billions of yen," 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.”

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Analysts have labeled Nintendo's 15 million unit sales forecast for the Switch 2 as "conservative," citing the uncertainty surrounding tariffs. Despite these challenges, the demand for the Switch 2 remains robust. Following a delay caused by tariffs, pre-orders for the Switch 2 began on April 24, with the console's price set at $449.99. The response was as anticipated, with overwhelming demand. Nintendo has also cautioned U.S. customers who pre-ordered from the My Nintendo Store that delivery on the release date is not guaranteed due to the high level of interest.

For further details, you can refer to IGN's Nintendo Switch 2 pre-order guide.