Nintendo announced in its recent quarterly earnings call that it anticipates selling 15 million units of the Switch 2 during the fiscal year following its launch next month. Analysts and investors have described the company’s estimates as conservative, given the strong demand for the hybrid console. However, Nintendo indicated that its cautious sales forecast is largely due to the higher price of the Switch 2. The company clarified that the tariffs introduced in the U.S. last month did not have an impact on their projections.
Pricing Implications on Sales Expectations
In an investor Q&A released Tuesday, following the financial results for the fiscal year ending March 31, 2025, Nintendo President Shuntaro Furukawa elaborated on the sales outlook. He noted that the sales target for Switch 2 is aimed at matching the performance of the original Switch during the same time frame after its launch in March 2017.
“The pricing of Nintendo Switch 2 is somewhat high compared to the original Nintendo Switch, which poses challenges for early adoption,” Furukawa remarked while addressing concerns over the conservative sales estimates. He added, “Nonetheless, the Nintendo Switch 2 is compatible with existing Nintendo Switch software, ensuring continuity between platforms. To encourage early adoption, we plan to bundle software with the hardware, aiming for a launch similar to that of the original Nintendo Switch.”
Trade Tariffs and Sales Forecast Stability
Despite needing to delay pre-orders for the Switch 2 in the U.S. following President Donald Trump’s announcement of extensive tariffs on imports, Furukawa stated that these trade issues did not influence the company’s sales forecasts.
“Our production capacity limitations were not a factor in our sales volume predictions. Additionally, the tariff situation or potential recession in the U.S. had no impact on our sales estimates,” he noted.
“To achieve the goal of 15 million units sold, manufacturing must exceed that number. Our aim is to replicate the successful launch of the original Nintendo Switch, and we are enhancing our production capacity to remain responsive to market demand,” he added.
High Demand for Switch 2
Despite the Switch 2’s starting price of $449.99 in the U.S., the console has generated robust interest in both the U.S. and Japan. Nintendo reported receiving 2.2 million applications for the lottery sale on its Japanese online store, far surpassing expectations. Furukawa also indicated that many applicants would not be chosen due to the overwhelming interest.
In the United States, pre-orders for the console rapidly sold out at retailers. The Switch 2 is positioned to be the largest console launch in history, with the higher price not deterring enthusiastic fans.
Furukawa acknowledged the significant interest in the Switch 2 during the Q&A session but cautioned about the challenges of sustaining that sales momentum after the initial launch period.
“We acknowledge the favorable response from the Nintendo Switch 2 Experience events and the high number of applications for pre-orders at My Nintendo Store in Japan. However, given the relatively high price of the Nintendo Switch 2, maintaining sales momentum beyond the launch and into the holiday season will be challenging,” he stated.
“We have been actively working to increase production capacity for the Nintendo Switch 2 since prior to the Experience events and the opening of applications. Our sales volume forecast was not based on any limits to production capability.”
The Mario Kart World will also be offered in a bundle with the Switch 2
Photo Credit: Nintendo
In addition to hardware sales, Furukawa discussed the company’s software sales forecasts, pointing out that the projected figure of 45 million units does not account for those bundled with the Nintendo Switch 2 + Mario Kart World package.
“When considering software units bundled with the hardware, our forecast would exceed the approximately 52 million software units sold for the original Nintendo Switch within the first 10 months of its release,” he explained.
The Nintendo Switch 2 is scheduled to launch in select markets on June 5, marking the first console launch from Nintendo in eight years since the original Switch debuted in 2017.
