Nintendo is dampening exuberant expectations for the upcoming Switch 2, even as initial demand appears explosive. In a recent earnings report, the gaming titan announced its forecast of 15 million units sold in the first fiscal year, well below analyst projections of 16.8 million.

Why the caution? It's likely tied to the uncertain landscape of US tariffs and Nintendo's historically conservative outlook. The high demand for the Switch 2 was evident as resellers quickly sold out, leading to pre-orders that might not even arrive by the launch date of June 5th! The excitement ramps up as fans eagerly anticipate this next-gen console, following the original Switch's impressive eight-year tenure.

However, the launch wasn't without its hiccups. Last month, Nintendo had to delay pre-orders due to concerns over potential tariffs on electronics. Despite this setback and some grumbling about the $450 price tag, the company received a staggering 2.2 million pre-order applications in Japan alone, shattering their expectations.

Nintendo President Shuntaro Furakawa expressed cautious optimism during discussions with investors, noting that tariffs are an uncontrollable factor. He warned that if additional tariffs result in a price hike in the US, consumer demand could dwindle. Furakawa also acknowledged that rising living expenses might strain budgets for games.

For this fiscal year, Nintendo anticipates selling 45 million titles for the Switch 2, a meaty number that hints at a successful launch despite the challenges. The original Switch family has achieved over 150 million sales globally, including 17.79 million during its initial 13 months. So, even with Nintendo's conservative estimates, the Switch 2 is poised to make a strong debut.

In light of the upcoming new console, Nintendo needs to make an impact this year, especially since sales of the original Switch have plummeted—down 30.3% from last year. Can the Switch 2 breathe new life into the brand? Only time will tell, but all signs point to a thrilling launch ahead!