Nintendo previously delayed Switch 2 pre-orders over uncertainty for costs, due to President Trump’s ongoing global tariff / trade war. The company didn’t raise the console’s price point after all, though it recently suggest prices may increase in the future.
A new financial briefing from the company noted while Nintendo’s consolidated net sales are expected to increase significantly by 63.1% year-on-year, their operating income is only expected to increase 13% year-on-year. This is because Switch 2 has a low profit margin, and costs for advertising will only increase.
Nintendo President Shuntaro Furukawa not they will have to increase the number of software sold for each Switch 2 console to increase their overall profit margin. Despite this, there’s a major concern over ongoing trade war / tariff changes, and Switch 2 may get a price increase later.
The forecast for the current fiscal year is based on the assumption that the tariffs by the United States will remain at the rates imposed on April 10th, for the rest of the year. The tariffs were factored into a negative impact of tens of billions of yen, in profits.
President Furukawa said “our basic policy is to recognize tariffs as a cost and factor them into the price when determining the selling price in any country or region,” but their top priority is to promote the Switch 2 hardware as soon as possible.
He added, “If the assumption of tariffs changes significantly, we will consider and implement any price adjustments after taking multiple aspects into account.”
Furukawa said if more tariffs are imposed and selling prices are raised on Switch 2, demand for the console may decrease in the United States. The president of Nintendo also expressed concerns over the impact of higher prices for daily necessities and groceries, which will reduce expendable income that may be used for gaming or other leisure activities.
Currently, Nintendo is forecasting to sell 15 million Switch consoles, the same level as the original Switch forecast that was set for 10 months from launch. Demand for the Switch 2 is possibly outpacing how fast Nintendo can produce the console, though Furukawa noted they are ramping up production.
“We have already strengthened our production system,” President Furukawa said. “We will make every effort to deliver the product as soon as possible after the release date.”
The Switch 2 will launch its pre-orders in both the United States and Canada starting next week, on April 24th. The original price point of $449.99 for the base system and the $499.99 Mario Kart World bundle will remain.
