Nintendo On Thursday, it said it plans to sell 15 million new Switch 2 consoles for the fiscal year ending in March 2026.
This is the first forecast for sale from a Japanese gaming giant since it announced the successor to the successful switch device, which is scheduled to be sold in June.
Nintendo also reported fourth quarter and full year results. This is how Nintendo provided LSEG estimates in the fourth quarter, which ended March 31st.
- Revenue: Compared to 21.616 billion yen, 208.7 billion yen ($1.45 billion) was expected.
- Net profit: It was expected to cost 41.6 billion yen and 339.1 billion yen.
Revenue fell 24.7% in the fourth quarter, down compared to the same period last year, but profits fell sharply by nearly 50%. This was largely expected as Nintendo fans were waiting for the Switch 2 and refraining from purchasing the current console.
Earlier this year, Nintendo significantly reduced its Switch sales forecast for the year ended March 31st. On Thursday, Nintendo said it sold 10.8 million switches a year.
Market research firm Omdia hopes Nintendo will sell two units of 14.7 million switches in 2025 alone.
“The Switch 2 will be launched in a stronger position than its predecessor, providing a strong foundation for adoption with over 100 million active switch users,” Omdia’s Senior Principal Analyst George Jijiashvili told CNBC via email.
Focused tariffs
Investors are also focusing on Nintendo’s forecasts for the fiscal year. The company expects its net sales to be 1.9 trillion yen, an increase of 63% from the previous year, but its LSEG estimate is not 2 trillion yen. We expect net profit to jump from 7.6%, below the estimated LSEG of 388.8 billion yen, to 300 billion yen.
However, Nintendo noted that all of its forecasts are based on US tariff rates effective April 10th. It will be suspended at mutual tariffs in many countries by President Donald Trump.
In April, Nintendo delayed pre-orders for the US Switch 2 after Trump first announced sweeping tariffs in countries around the world. Nintendo consoles are manufactured in Vietnam and face 46% of jobs once the suspension is lifted.
Participants will pass the Advertising Committee on 11 April 2025 during the Nintendo Switch 2 experience at the Excel London International Exhibition and Convention Center in London, London.
Isabel Toddler | Reuters
Nintendo President Furukawa on Thursday could reduce demand in the US if additional tariffs are imposed and the price of the goods needs to be adjusted, Reuters reported. The obligation could reach a profit of several tens of billions of yen, Furukawa added.
Serkan Toto, CEO of Easy Games, a Tokyo-based game consulting firm, said Nintendo’s predictions are usually conservative.
“Nintendo loves to lower their forecasts, and the current climate around tariffs gives them all the reasons to be more cautious than ever,” Toto told CNBC.
He added that tariffs are creating a “unclear future” for Nintendo, making it “impossible” for hardware manufacturers to make sales forecasts.
“What if the tariffs on imports from China stayed this long, or if they were raised for Vietnam?” Toto said.
“If Nintendo had to raise prices over $100, all bets would be turned off and the company would be under heavy pressure in all important US markets.”
Switch 2 Fuel Stock Rally
Investors are currently focusing on how the console’s successor, the Switch 2, will work after its launch. Switch 2 starts at $449.99 in the US, Improved features compared to its predecessor.
Nintendo said it plans to sell 45 million software units at the same time, similar to its forecast for sales of 15 million units for the fiscal year ending in March 2026.
The game is important to the success of any console, and Nintendo said the Switch 2 will be released under two titles: “Mario Kart World” and “Nintendo Switch 2 Welcome Tour.” There are also Switch 2 versions of existing games such as “Zelda: Breath of the Wild.” Nintendo is leaning against popular characters like Mario and Zelda to enhance the appeal of Switch 2.
Nintendo first launched the original Switch in 2017, becoming the second most popular console in the Japanese gaming giant, with over 150 million units sold. The company was able to extend the lifespan of its hardware thanks to hit games, including characters such as Super Mario, franchises such as Pokemon, and the expansion of its intellectual property into movies.
Investors hope the company will rise roughly 30% this year and rise 64% over the past 12 months, allowing the company to continue riding the wave of popularity.
