Nintendo Co. projects sales of 15 million units for its upcoming Switch 2 console, a figure that fell short of many analysts’ forecasts as the Japanese gaming giant grapples with tariff uncertainties.
The conservative outlook comes despite Nintendo’s prediction that operating profit will climb 13% to ¥320 billion ($2.2 billion) for the fiscal year ending March 2026. The Switch 2, scheduled for release on June 5, faces headwinds from tariffs imposed in April.
During Thursday’s press conference, Nintendo President Shuntaro Furukawa acknowledged that profits could take a hit of “several tens of billions of yen” if the tariffs remain in place throughout the fiscal year. He expressed concern that pricing adjustments necessitated by these additional tariffs might dampen consumer demand.
The cautious sales target suggests Nintendo may be preparing for challenging market conditions as trade tensions affect its supply chain and pricing strategy. The forecast follows a trend of gaming hardware makers navigating economic pressures while trying to maintain momentum in an increasingly competitive entertainment landscape.
Investors will be watching closely to see if the Switch 2 can match the success of its predecessor, which has sold over 140 million units since its 2017 launch.
