Nintendo Forecasts Strong Demand for Switch 2 Amid Tariff Risks

Nintendo expects to sell 15 million units of its next-generation gaming console, the Switch 2, and projects a 13% rise in operating profit to 320 billion yen ($2.22 billion) for the fiscal year ending March. The highly anticipated console, launching on June 5, follows the massive success of the original Switch, which has sold over 150 million units since 2017.

Despite global enthusiasm, Nintendo faces external pressures as it navigates supply chain disruptions triggered by U.S. President Donald Trump’s escalating trade tariffs. The company temporarily paused U.S. pre-orders while assessing the tariff impact but confirmed it would maintain the Switch 2’s launch price at $449.99. President Shuntaro Furukawa noted potential profit hits in the “tens of billions of yen” and warned of demand declines if future tariffs force price adjustments.

Nintendo’s financial results reflect a transitional period. Operating profit dropped 46.6% to 282.5 billion yen in the previous fiscal year. Yet expectations remain high for the Switch 2, which boasts a larger screen and enhanced graphics. The company anticipates 45 million software unit sales for the new console, which debuts with flagship titles like Mario Kart World.

While diversifying through character licensing, films, and theme parks, Nintendo’s core remains its console business. It also forecasts selling 4.5 million units of the aging original Switch and 105 million software units for it in the same period.

Industry analysts view Nintendo’s sales target as conservative. Serkan Toto of Kantan Games suggests Switch 2 sales could reach 20 million units. With Microsoft and Sony recently raising console prices, Nintendo’s pricing strategy and ability to manage geopolitical risks will be key to capturing market share in a competitive gaming landscape.