Nintendo's Ambitious Plans for Switch 2

In a recent online press conference, Nintendo President Shuntaro Furukawa shared the company's lofty expectations for the upcoming Switch 2, alongside concerns about the impact of U.S. tariffs on its success. As Nintendo gears up for a projected $13.04 billion in sales for fiscal year 2026, the potential tariff situation raises red flags.

Switch 2: A More Expensive Gaming Experience

Furukawa noted that the Switch 2, which boasts enhanced features compared to its predecessor, comes at a higher price point. This is expected to present challenges in achieving sales targets. "The unit sales price is high, and there are corresponding hurdles," Furukawa stated, emphasizing the goal to match the original Switch's impressive debut of 15.05 million units.

The Tariff Dilemma

With the U.S. being Nintendo's largest market for the original Switch, concerns loom over how tariffs—specifically those instituted during Trump's administration—may affect consumer spending. Furukawa revealed that the impact could cost Nintendo "tens of billions of yen." He expressed worry, stating, "If prices of daily necessities like food rise due to tariffs, then consumers may have less disposable income for consoles. Adjusting the price of Switch 2 could decrease demand further."

Navigating Uncertainty in Manufacturing

During the press conference, details emerged regarding the implications of tariffs on production. Furukawa mentioned that while the majority of Switch hardware intended for the North American market is produced in Vietnam, some accessories and amiibo are made in China, subjecting them to tariffs as high as 145%. Nintendo is optimistic that physical software will remain unaffected.

Price Strategy and Consumer Acceptance

Despite the looming tariff consequences, Nintendo's approach is to treat tariffs as part of their costs. However, Furukawa stressed the importance of not only sustaining sales momentum for the Switch 2 but also ensuring its broad market acceptance. Therefore, any price adjustments will be carefully weighed against consumer expectations.

Skyrocketing Demand Amidst Tariff Delays

While analysts have called Nintendo's sales forecast "conservative," interest in the Switch 2 remains high. Pre-orders opened on April 24, priced at $449.99, and are facing overwhelming demand. Nintendo has cautioned U.S. customers that delivery dates are uncertain due to the flood of pre-orders, illustrating a strong consumer desire despite the uncertainty surrounding tariffs.

Stay Updated with Switch 2 News

For the latest updates on Nintendo Switch 2 pre-orders and other important announcements, check out IGN's dedicated pre-order guide.