Nintendo forecasts sales of 15 million Switch 2 consoles next year

The successor to the Switch – the third best-selling console in history after Sony's PlayStation 2 and Nintendo's Nintendo DS – will be released worldwide on June 5.

Japanese video game giant Nintendo predicts it will sell 15 million units of its long-awaited Switch 2 console during the current fiscal year. However, the company warned that US tariffs could affect its profit.


The successor to the Switch – the third best-selling console in history after Sony's PlayStation 2 and Nintendo DS – will be released worldwide on June 5.

Analysts point out that despite Nintendo's diversification into theme parks and hit movies, about 90% of the company's revenue still comes from the Switch.


However, the sales forecast is more conservative than the 16.8 million expected in a survey of economists by Bloomberg.


The Switch, a portable device compatible with TVs that became a must-have gadget for many during the lockdown, has sold around 150 million units since its launch in 2017.


For the fiscal year ended March 31, Nintendo reported a 43.2% drop in full-year net profit to 278.8 billion yen ($1.9 billion) as gamers wait to spend their money on the Switch 2.


Nintendo forecasts net income of 300 billion yen for the current fiscal year, but warned that US trade tariffs could affect its profits.


"Changes in tariff rates may affect our financial forecast. We will continue to monitor the situation to respond to changes in market conditions," the company said.

Last month, it revealed details of the Switch 2, a hybrid console like its predecessor.


However, the price came as a surprise, being more than a third higher than that of the original Switch in major markets, including the US, where it will cost $449.99.

The version for the Japanese market will cost 49,980 yen ($350).


Nintendo delayed pre-orders for the Switch 2 in the US by several weeks while it assessed the impact of President Donald Trump's trade tariffs.

Last month, however, the company boasted higher-than-expected demand in Japan for pre-orders of the new console.


Prior to the announcement of the financial results on May 8, Atul Goyal of Jefferies said that "we expect demand to significantly exceed supply" for the Switch 2.

The latest news that the next game in the Grand Theft Auto series has been delayed until May 2026 is also positive for Nintendo, Goyal said.


"GTA6 has no direct impact on Nintendo, but it certainly makes Nintendo's competition much less intense in terms of game releases," he added. | BGNES

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