Nintendo’s shiny new console, the Switch 2, is around the corner but U.S. tariffs could dent the celebration hard.
Nintendo confirmed the Switch 2 would cost more than its predecessor in early 2025. The company admitted the higher price might cool early adoption, even though the new console will play existing Switch games. In an effort to soften the blow, Nintendo plans to bundle in software, because what better way to say sorry than with Mario?
In a March 2025 online financial briefing, President Shuntaro Furukawa dropped a quiet bomb: Nintendo expects “tens of billions” of yen in profit losses due to U.S. tariffs. 10 billion yen is approximately $67 million USD, so Nintendo is expecting to lose hundreds of millions of dollars as a result of these changes.
Nintendo braces for tariff trouble
Nintendo’s forecast assumed tariffs imposed as of April 10 would remain in place through next March. Those assumptions include a 10% tariff on goods from Vietnam and Cambodia, and a whopping 145% for China. North America’s Switch 2 stock will mostly come from Vietnam, but that still stings. Packaged software is exempt for now, but that could change.
So, the obvious questions is, will Nintendo hike prices to cover the blow? Not immediately. Furukawa said the company wants to “maintain platform momentum,” especially with this being their first new system launch in eight years. Translation: we’re eating the loss, for now, to keep players hyped.
Still, price flexibility is on the table. In the face of tariff changes and consumer backlash, Nintendo says it’ll “consider adjustments” as needed.
The company also blamed declining profit margins on Switch 2’s higher hardware costs and predicted a dip in operating profit, even as sales rise.
Despite all the turbulence, the Switch 2 is on track for a launch this fiscal year. Nintendo is aiming to match the original Switch’s first-year success with 15 million units sold. Pre-order interest in Japan alone, which hit 2.2 million applications in two weeks, suggests demand won’t be the problem.
So yes, the Switch 2 is real. Yes, it costs more. And yes, tariffs are raining on Nintendo’s parade, but Nintendo still expects to make a big profit off the console launch.
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