Nintendo recently shared its projection of selling 15 million Switch 2 consoles during the current financial year. This would match the original Switch’s impressive performance and rank among the best console launches ever. Despite this ambitious target, market analysts described the forecast as “conservative” and “on the low side” given the extraordinary expectations surrounding the Switch 2.
When questioned about these sales projections during an investor Q&A session, Nintendo president Shuntaro Furukawa provided unusually straightforward comments. He explained that the company’s cautious outlook stems primarily from the console’s higher price compared to its predecessor, not from concerns about potential tariffs under President Trump’s administration as many had speculated.
“Nintendo Switch 2 is priced relatively high compared to Nintendo Switch, so we recognize that there are corresponding challenges to early adoption,” Furukawa explained. To counter this barrier, Nintendo plans to bundle software with the hardware to encourage faster adoption in the first fiscal year, hoping to replicate the successful launch strategy of the original Switch.
Pre-order Momentum and Long-term Challenges
Furukawa urged investors not to become overly enthusiastic about the strong pre-order demand for Switch 2. He noted that while initial launch excitement might be high, maintaining that momentum through holiday seasons and beyond would be challenging due to the higher price point.
Interestingly, he clarified that production capacity wasn’t limiting their forecast, nor was economic uncertainty. “The tariff situation in the U.S. or a possibility of a recession did not affect our sales volume forecast either,” he stated directly.
Tariff Impact and Pricing Strategy
Addressing the U.S. tariff situation specifically, Furukawa said Nintendo is proceeding under the assumption that current tariff rates will continue throughout the financial year, resulting in “a negative impact of several tens of billions of yen at the profit level.”
He further explained Nintendo’s typical approach: “Our basic policy is that for any country or region, if tariffs are imposed, we recognize them as a part of the cost and incorporate them into the price.” However, this launch represents Nintendo’s first new gaming system in eight years, making it a special case. The priority is maintaining platform momentum and rapidly expanding the new hardware’s user base.
The company hasn’t ruled out price adjustments if tariff conditions change, but such decisions would consider various market factors.
Throughout the Q&A, I found it almost comical watching Furukawa repeatedly explain to insatiable investors why selling 15 million units, potentially making Switch 2 one of the fastest-selling consoles in gaming history, should be considered a remarkable achievement rather than a disappointment. Such is the reality of today’s investment world where exceptional performance is often treated as merely adequate.
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