Nintendo warned it might but improve the price of its long-anticipated new console, after projecting weaker-than-expected preliminary gross sales of the Switch 2.

The Kyoto-based firm expects shipments of the Swap 2 to achieve 15 million items within the yr to March, shy of the 16.8 million common of analyst estimates compiled by Bloomberg. Nintendo forecast annual working revenue of JPY 320 billion ($2.2 billion or roughly Rs. 18,768 crore), additionally considerably wanting estimates. That was regardless of overwhelming pre-orders for the $450 (roughly Rs. 38,390) gadget and market expectations that the Swap 2 can be the fastest-selling console in historical past.

Underscoring the uncertainty Nintendo’s grappling with, executives warned they might hike costs for the Switch 2 within the US, relying on how Trump administration tariffs work out. The Japanese firm now makes the vast majority of its gaming units in , a goal of Washington’s marketing campaign to shake up international commerce.

“As for pricing within the US, there’s a risk that changes could also be made sooner or later relying on market situations,” President Shuntaro Furukawa instructed analysts on a name after the report on Thursday. The corporate is factoring in a tariff affect of tens of billion yen on revenue this yr, he added, in keeping with a recording of the decision reviewed by Bloomberg Information.

Nintendo’s first intention is to match the unique Swap’s debut again in 2017, when it offered round 15 million items in its first 10 months, he added, stressing that the determine doesn’t replicate any provide constraints. The corporate is factoring in lots of elements past simply the price of manufacturing and is eager to make sure sturdy preliminary momentum for the brand new platform, Furukawa mentioned.

“These forecasts are in all probability going to separate the Nintendo-watching viewers,” mentioned Pelham Smithers, managing director at Japan fairness analysis agency Pelham Smithers Associates. “You’ll have a very good portion who will assume administration is being cautious, understanding that there is little upside in being too bullish at this stage. Nevertheless, you will even have a portion that will probably be involved that Nintendo could look to maintain the Swap 2 briefly provide via this fiscal yr.”

In his feedback to analysts, Furukawa mentioned the corporate’s objectives weren’t a matter of any provide constraints and it was bearing in mind the upper {hardware} value.

Nintendo is gearing up for a once-in-a-decade handover, transferring on from the eight-year-old Swap and rekindling development following years of tepid earnings and waning demand for the unique. Within the March quarter, Nintendo’s working revenue fell 46 % to JPY 35 billion (roughly Rs. 2,057 crore), concluding a fiscal yr wherein the corporate offered 10.8 million Swap consoles and 155.4 million software program copies.

The earnings comply with surging pre-orders of the Swap 2 that prompted President Shuntaro Furukawa to warn that many shoppers will not be capable to get the brand new console on the discharge date in Japan, whereas orders shortly sold out at many US retailers.

What Bloomberg Intelligence Says

Nintendo’s softer-than-expected fiscal 2026 gross sales and revenue steerage vs. consensus is in keeping with an traditionally conservative stance, which tariffs in all probability justify. Constructive pre-order traits in Japan, the US and different key markets counsel the corporate may obtain the 15 million-unit gross sales objective earlier for its Swap 2 video-game console. The 45 million software-unit objective additionally appears beatable, with the sturdy lineup of third-party video games — together with Cyberpunk 2077 — and in-house ones serving to activate or entice upgrades amongst Nintendo’s 366 million customers.

— Nathan Naidu, BI analyst

In some other yr, the appreciable social media buzz across the Swap 2, together with the console’s pre-order momentum, would counsel rosy gross sales forward. However US President Donald Trump’s tariff insurance policies and fears that they might drive Nintendo to boost costs are denting inventor sentiment.

The corporate, which produces the majority of its Swap consoles in , has lifted the worth tag on some Swap 2 equipment and warned clients within the US that costs could rise on different merchandise relying on the tariffs imposed. The Swap 2 is already Nintendo’s most costly console.

© 2025 Bloomberg LP

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