Nintendo has signaled the possibility of raising the price of its highly anticipated new console, the Switch 2, after revising down its initial sales projections. The company expects to ship approximately 15 million units by March, falling short of the 16.8 million predicted by analysts surveyed by Bloomberg.
Additionally, Nintendo has forecasted an annual operating profit of JPY 320 billion (equivalent to $2.2 billion or about Rs. 18,768 crore), which is also below market expectations. This projection comes despite strong pre-order demand for the console, priced at $450 (around Rs. 38,390), and widespread anticipation that the Switch 2 would become the fastest-selling console of all time.
As uncertainty looms, company executives have indicated that pricing adjustments for the Switch 2 in the United States could be in play, depending on the outcomes of ongoing tariff discussions under the Trump administration. The majority of Nintendo’s gaming hardware is currently manufactured in China, which has become a focal point in U.S. trade policy.
“Concerning pricing in the U.S., there is a possibility that we may need to make adjustments based on market conditions,” President Shuntaro Furukawa stated during a conference call with analysts following the release of the company’s report. He noted that the firm is predicting a tariff impact of tens of billions of yen on profits for the current year.
Nintendo aims to match the original Switch’s sales performance from its launch in 2017, during which the company sold 15 million units in the first ten months. Furukawa emphasized that this estimate does not reflect any supply chain limitations. The company is carefully considering multiple factors beyond production costs to bolster initial sales momentum for its new console.
“These forecasts are likely to divide opinions among Nintendo observers,” commented Pelham Smithers, managing director of Pelham Smithers Associates, a Tokyo-based equity research firm. “Some may view management’s stance as cautiously grounded, recognizing that being overly optimistic at this stage carries risks. Conversely, others might worry that Nintendo could intentionally limit the availability of the Switch 2 for the rest of the fiscal year.”
In his remarks, Furukawa clarified that the goals set by the company are based on strategic considerations rather than limitations in supply and are also influenced by the anticipated higher costs associated with the hardware.
Nintendo is poised to transition from the eight-year-old Switch and revive growth following a period marked by stagnant earnings and diminishing interest in the original console. In the most recent quarter, the company’s operating profit plummeted by 46 percent to JPY 35 billion (approximately Rs. 2,057 crore), wrapping up a fiscal year in which it sold 10.8 million Switch consoles alongside 155.4 million software titles.
The encouraging pre-order numbers for the Switch 2 have led President Shuntaro Furukawa to caution that many consumers may not receive their consoles on the anticipated release date in Japan, while outlets in the U.S. quickly sold out of pre-orders.
Insights from Bloomberg Intelligence
Nintendo’s lower-than-expected sales and profit guidance for fiscal 2026 aligns with its traditionally cautious approach, which is likely influenced by tariff-related considerations. Positive pre-order activity across Japan, the U.S., and other key markets may help the company reach its 15 million unit sales goal for the Switch 2 sooner than anticipated. Additionally, the target of 45 million software units sold appears more achievable, bolstered by a robust collection of third-party and internal titles designed to attract upgrades among Nintendo’s 366 million users.
— Nathan Naidu, BI analyst
In other circumstances, the enthusiastic buzz on social media and robust pre-order numbers for the Switch 2 would typically indicate positive sales projections. However, the implications of U.S. tariff policies are undermining investor confidence and could lead to price hikes.
The company, which predominantly produces its Switch consoles in China, has already increased prices for some accessories related to the Switch 2 and issued warnings to U.S. customers regarding potential price increases on other items due to tariffs. The Switch 2 stands as the most expensive console in Nintendo’s lineup.
© 2025 Bloomberg LP
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