Switch 2 Conservative Sales Forecast Not Affected by US Tariffs, but High Price a Factor, Says Nintendo

Nintendo stated throughout its newest quarterly earnings name final week that it expects to promote 15 million items of the Switch 2 throughout the fiscal 12 months when it launches subsequent month. Industry analysts and buyers have referred to as the corporate’s projections conservative, contemplating the excessive demand for the hybrid console. Nintendo, nevertheless, has stated its lower-than-expected gross sales quantity forecast displays the Nintendo Switch 2’s increased price ticket. The firm has additionally clarified that the tariffs introduced by the US final month didn’t have an effect on its projections.

Switch 2 Price a Factor in Sales Forecast

In an investor Q&A printed Tuesday following the corporate’s monetary outcomes report for fiscal 12 months ended March 31, 2025, final week, Nintendo president Shuntaro Furukawa stated Switch 2’s gross sales projection aimed to achieve the identical degree of gross sales the unique Switch achieved within the 10-month interval following its launch in March 2017.

“Nintendo Switch 2 is priced relatively high compared to Nintendo Switch, so we recognize that there are corresponding challenges to early adoption,” Furukawa defined in response to a question about Nintendo’s conservative estimates for Switch 2 gross sales quantity. (*2*)

US Tariffs Did Not Affect Forecast

While Nintendo was pressured to push again Switch 2 pre-orders within the US final month after President Donald Trump introduced widespread tariffs on imported items from a number of nations, Furukawa claimed the corporate’s projections weren’t affected by the commerce scenario.

“The limits of our hardware production capacity were not a factor in setting our sales volume forecast. Additionally, the tariff situation in the U.S. or a possibility of a recession did not affect our sales volume forecast either,” the Nintendo president stated.

“In order to achieve sales of 15 million units, we will need to manufacture the hardware in quantities greater than that. Our first goal is to get off to the same start we did with Nintendo Switch, and we are working to strengthen our production capacity so we can respond flexibly to demand,” he added.

Nintendo Switch 2 Demand

Despite the upper value level than its predecessor — Nintendo Switch 2 begins at $449.99 within the US — the upcoming console has seen excessive demand in each US and its house market in Japan. Nintendo has stated it obtained 2.2 million functions for the Switch 2 lottery sale on its official on-line retailer for patrons in Japan alone — far exceeding its expectations. In truth, Furukawa stated a vital variety of the candidates will not be chosen owing to excessive demand for the console.

In the US, pre-orders for the console shortly bought out throughout retailers. The Switch 2 is predicted to be the largest console launch in historical past and its increased value has not deterred keen followers.

Furukawa acknowledged the robust response to the Switch 2 within the Q&A, but stated it could be exhausting to keep up the gross sales momentum going robust past the launch interval.

“We recognize the positive feedback from the Nintendo Switch 2 Experience events and the situation with applications for randomly selected drawings for pre-orders on My Nintendo Store in Japan. But the Nintendo Switch 2 hardware is priced relatively high compared to Nintendo Switch, so even if there is momentum around the launch, we know it will not be easy to keep that momentum going over the long term through the holiday season and beyond.

“We have been working to ramp up Nintendo Switch 2 hardware production since even before we held the Nintendo Switch 2 Experience events and began My Nintendo Store applications. Our sales volume forecast was not determined based on any limit to production capacity.”

Mario Kart World may even be obtainable as a part of a bundle with the Switch 2
Photo Credit: Nintendo

In addition to {hardware} gross sales, the chief make clear Nintendo’s software program gross sales projections, confirming the corporate’s software program gross sales quantity forecast of 45 million items didn’t embody Mario Kart World items included within the Nintendo Switch 2 + Mario Kart World bundle.

“When we account for software units bundled with the hardware, the forecast surpasses the roughly 52 million units of software sold for Nintendo Switch in the 10 months after its launch,” he stated.

The Nintendo Switch 2 is about for launch in choose markets on June 5. The system marks Nintendo’s first online game system launch in eight years after the unique Switch got here out in 2017.