Nintendo has released its latest financial results, confirming a fall in revenue, while also outlining big predictions for the future. As noted, net sales have fallen 30.3% year-on-year, but this drop was largely expected, due to the quiet before the launch of the Nintendo Switch 2. With few games releasing for the original Nintendo Switch in this period, a downturn was to be expected.
The next financial quarter should be significantly better for Nintendo, as it turns focus to the Nintendo Switch 2. As revealed, the company is forecasting major sales for the console, predicting it will hit 15 million units sold by the next financial year, ending March 2026. It’s further predicting it will sell 45 million units of software, suggesting Switch owners will buy at least three games within their first year of console ownership.
As a result of this forecasted success, Nintendo would end the next financial year 63.1% ahead in net sales, 13.3% ahead in operating profit, and 7.6% ahead in net profit, compared to the last financial year.
Should the Switch 2 sell as much as Nintendo predicts, it would be one of the fastest-selling consoles of all time, eclipsing even the original Nintendo Switch. Analysts have agreed it’s possible this figure is hit by March 2026, but it does remain a lofty goal.
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There are also plenty of caveats with this forecast. For one thing, while Nintendo‘s Switch 2 sales prediction is couched in data from early demand and online chatter, the uncertainty of the economy means not everyone who wants a Switch 2 will purchase one within its first year on sale.
The impact of the Trump-implemented tariffs on goods entering the United States from overseas may also have a significant impact on consumer spending. Per Nintendo, the forecast delivered is based only on the U.S. tariff rate effective from 10 April 2025.
As reported by CNBC, it does appear tariffs are a major concern for Nintendo. It quotes company president Shuntaro Furukawa as saying that US demand for the Switch 2 may fluctuate if the tariff situation changes, leading to a decrease in sales. Furukawa also reportedly noted that the implementation of duties could impact profit, to the tune of tens of billions of yen.
At this stage, there is much uncertainty about the economy and trade policies of the United States, and how it may impact global trade. Recent analysis has suggested console prices in the US could significantly rise, if tariffs are formally implemented and remain in place, and should that be the case, demand for the Switch 2 would naturally lessen.
For now, it appears Nintendo remains confident in its 15 million unit prediction, backing the Switch 2 as it heads to launch. We’re likely to hear much more about this console and its sales performance in the coming weeks, so stay tuned.
