Nintendo wants to quickly popularize the Switch 2 but prices could increase depending on tariffs

This is the fiscal year window for earnings calls and like EA, Nintendo also shared its yearly reports. FY25 overall was not the best for Nintendo as it saw a dip in hardware and software sales, though business from the games released in the fiscal year grew steadily. The Switch 2, however, is expected to drive significant growth for the next fiscal year but the company is monitoring the tariff situation and while the pricing for the console has held steady for now, it may change in the future. 

According to a Reuters report, Nintendo President Shuntaro Furukawa said in the earnings call that the pricing for the Switch 2 will be adjusted if additional tariffs are imposed. This may lead to a dip in demand but for now, the priority is to quickly popularize the console globally. Nintendo is targeting 15 million units sold for the Switch 2 and operating profit to rise 13% in FY26. The Japan pre-order lottery has already brought in 2.2 million orders so the 15 million units is said to be a more conservative estimate. 

Nintendo decided to push back pre-orders in the US and Canada to assess the impact of tariffs but it came back with the same price for the consoles as initially announced, though the prices for accessories went up. It looks like the company is closely monitoring the situation and even though it wants to get the Switch 2 in the hands of as many people as possible, the price for the console is still dependent on the severity of the tariffs. 

The FY25 report shows hardware sales decreased by 31.2% year-on-year and software sales decreased 22.2% year-on-year. One of the reasons was that sales in the previous fiscal year were driven by The Legend of Zelda: Tears of the Kingdom that came out May 2023 and Super Mario Bros. Wonder in October 2023. Considering the original Switch is now eight years old, entering its ninth year, these sales are considered steady.