Nintendo president Shuntaro Furukawa has explained the company’s lower-than-expected Switch 2 sales projections, acknowledging that the console’s relatively high price point could make it more challenging to sell compared to the original console.
In its results published last week, Nintendo said it expects to sell 15 million Nintendo Switch 2 consoles during its launch window. That would be a very strong performance, putting Switch 2 roughly in line with the original console, which was one of the fastest-selling consoles ever.
However, many industry analysts expected much higher projections for Switch 2, especially following strong pre-orders for the system, which previously caused president Shuntaro Furukawa to warn of shortages in Japan.
During an investor Q&A published on Tuesday, Furukawa was asked about the forecast and why it was more conservative than many analysts’ estimates.
“Nintendo Switch 2 is priced relatively high compared to Nintendo Switch, so we recognize that there are corresponding challenges to early adoption,” he replied. “That being said, Nintendo Switch 2 can play compatible Nintendo Switch software, so there is continuity between the platforms.
“We are taking steps like bundling software with the hardware to accelerate adoption in the first fiscal year, aiming to get off to the same start we did with Nintendo Switch.”
Furukawa claimed that hardware production capacity was “not a factor” in setting its Switch 2 sales forecast.
“Additionally, the tariff situation in the U.S. or a possibility of a recession did not affect our sales volume forecast either,” he said. “In order to achieve sales of 15 million units, we will need to manufacture the hardware in quantities greater than that. Our first goal is to get off to the same start we did with Nintendo Switch, and we are working to strengthen our production capacity so we can respond flexibly to demand.”
The president went on to acknowledge the positive feedback from its many hands-on events held around the world, and the pre-orders via its My Nintendo Store, but again returned to what he called Switch 2’s “relatively high” price compared to Switch 1.
“Even if there is momentum around the launch, we know it will not be easy to keep that momentum going over the long term through the holiday season and beyond,” he said. “We have been working to ramp up Nintendo Switch 2 hardware production since even before we held the Nintendo Switch 2 Experience events and began My Nintendo Store applications. Our sales volume forecast was not determined based on any limit to production capacity.”
During the Q&A, Furukawa was also asked about the effect of US tariffs on Nintendo Switch 2. US President Trump’s tariffs have already forced Nintendo to raise some hardware prices in the US.
“Our financial projections were created based on the assumption of U.S. tariffs of 10% on products produced in Japan, Vietnam, and Cambodia, and 145% on China,” Furukawa said.
“Our hardware is produced in China, Vietnam, and Cambodia, and hardware for North America is mainly produced in Vietnam. While there are also some accessories and amiibo produced in China, we do not disclose the impact of tariffs on individual products.”
He added: “Our basic policy is that for any country or region, if tariffs are imposed, we recognize them as a part of the cost and incorporate them into the price. On the other hand, the fiscal year ending March 2026 is the launch period for our first new dedicated video game system in eight years.
“If the tariff assumptions change, we will consider how to handle the situation while keeping in mind the importance of platform momentum and growth of the hardware install base.”
