Nintendo Forecasts 15 Million Switch 2 Sales, Sees 13% Profit Rise Despite Tariff Risks

Nintendo expects to sell 15 million units of its upcoming Switch 2 console in the fiscal year ending March, projecting a 13% increase in operating profit to 320 billion yen ($2.22 billion) amid ongoing global trade tensions.

Key Highlights:

• Switch 2 Launch: The successor to the original Switch, which sold over 150 million units since 2017, will debut on June 5. It will feature improved graphics and a larger screen.

• Tariff Concerns: Nintendo paused U.S. pre-orders temporarily due to uncertainty over President Trump’s tariffs, but resumed after deciding to keep the U.S. retail price at $449.99.

• Profit Outlook: Although Nintendo expects a profit hit in the tens of billions of yen from tariffs, it anticipates a solid rebound from last year’s 46.6% drop in operating profit to 282.5 billion yen.

• Software Expectations: Nintendo forecasts 45 million Switch 2 software sales, alongside 4.5 million units of the original Switch and 105 million software units for that aging system.

• Launch Titles: Switch 2 will debut with anticipated games including “Mario Kart World”, expected to boost early adoption.

Market Context:

• Analysts like Serkan Toto of Kantan Games believe Nintendo’s forecast is conservative, with potential demand pushing sales closer to 20 million units.

• The Switch 2 arrives as competitors Sony and Microsoft increase their console prices, potentially making Nintendo’s launch more appealing.

Despite ongoing trade war risks and pricing sensitivities, early signs suggest robust demand for Nintendo’s new hardware, which will be crucial for maintaining momentum in a business still heavily reliant on console sales.