Nintendo announced on Thursday its expectation to sell 15 million units of the anticipated Switch 2, projecting an operating profit increase of 13 percent to JPY 320 billion ($2.22 billion or approximately Rs. 18,955 crore) for the fiscal year ending in March.
The company is gearing up for the launch of the Switch 2 on June 5, which will challenge their ability to manage supply chains effectively amid the ongoing trade tensions between the U.S. and China.
The Switch 2 will serve as the successor to the original Switch, which has seen over 150 million units sold since its debut in 2017, significantly revamping Nintendo’s financial landscape after the less successful Wii U.
“Nintendo appears to be adopting a cautious but sensible approach with its sales forecast,” commented Serkan Toto, founder of the consultancy Kantan Games.
Known for its conservative outlook, Toto predicts that sales of the Switch 2 may actually reach closer to 20 million units.
Nintendo temporarily halted U.S. pre-orders while assessing the potential impact of rising U.S. tariffs. The company has since confirmed that the pricing will remain at $449.99 (about Rs. 42,692).
“Should additional tariffs be imposed in the future and we need to adjust our prices, it could lead to a reduction in demand,” stated Nintendo President Shuntaro Furukawa during a recent earnings briefing.
Furukawa also indicated that the company anticipates a profit hit in the tens of billions of JPY due to tariffs and will update its forecasts if necessary.
Despite expanding into retail stores and featuring characters in theme parks and films, Nintendo still heavily relies on its console business.
For the fiscal year that ended in March, operating profit saw a decline of 46.6 percent, dropping to JPY 282.5 billion (approximately Rs. 16,689 crore).
Nintendo estimates that software sales for the Switch 2 could reach 45 million units this financial year, with launch titles including “Mario Kart World.”
In the same timeframe, the company expects to sell 4.5 million units of the older Switch model and 105 million software units for that system.
There are indications of strong demand for the new gaming device, which boasts improved graphics and a larger display than its predecessor.
Recently, both Microsoft, known for the Xbox, and Sony, the maker of PlayStation, have increased their console prices.
© Thomson Reuters 2025
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