Nintendo’s upcoming Switch 2 is almost here, but there’s a catch that might sting the company’s profits hard. U.S. tariffs are expected to cause Nintendo to lose tens of millions of dollars on the new console’s sales, even though demand looks strong.
In a recent financial briefing, Nintendo’s President Shuntaro Furukawa revealed that the company is bracing for “tens of billions” of yen in profit losses due to tariffs imposed on goods from countries like Vietnam, Cambodia, and China. To put that into perspective, 10 billion yen is roughly USD 67 million, so the losses could easily reach hundreds of millions.
Nintendo braces for tariff trouble
The tariffs include a 10% charge on goods from Vietnam and Cambodia, and a massive 145% on products from China. Since most North American Switch 2 stock will come from Vietnam, the 10% tariff still hurts. Software bundles are currently exempt, but that might change down the line.
Will Nintendo raise the Switch 2 price to cover these extra costs? Not right away. Furukawa said the company wants to keep the momentum going with this first new system launch in eight years, meaning Nintendo is absorbing the losses for now to keep fans excited.
That said, Nintendo is open to “consider adjustments” if tariffs or consumer reactions force their hand later on. The company also pointed out that higher hardware costs for the Switch 2 will squeeze profit margins, even if sales climb.
Despite the financial hurdles, the Switch 2 launch is still on track for fiscal 2025. Nintendo hopes to match the original Switch’s first-year sales of 15 million units. Pre-orders in Japan alone hit 2.2 million in just two weeks, showing that demand is not the problem.
So yeah, Switch 2 is pricier, and tariffs are raining on Nintendo’s parade. Still, the company expects to profit from this new console launch. What do you think about Nintendo eating these losses instead of hiking prices immediately? Drop your thoughts in the comments below!
