Nintendo in its latest earnings report revealed its expects to ship 15 million Nintendo Switch 2 consoles by the end of its current fiscal year, which ends on March 31, 2026.
Nintendo President Shuntaro Furukawa in a newly published Q&A with investors was asked about the “fairly conservative number” and if that is due to the production capacity limitations, the impact of the Trump tariffs, or the possibility of a recession.
Furukawa said the main reason for the forecast is due to the Switch 2 costing a decent amount more than the Switch 1.
“We are forecasting Nintendo Switch 2 hardware sales of 15 million units for this fiscal year,” he said. “We set this figure with the aim of reaching the same level of sales we achieved with Nintendo Switch in the roughly 10-month period between its launch in March 2017 and December that year.
“Nintendo Switch 2 is priced relatively high compared to Nintendo Switch, so we recognize that there are corresponding challenges to early adoption. That being said, Nintendo Switch 2 can play compatible Nintendo Switch software, so there is continuity between the platforms. We are taking steps like bundling software with the hardware to accelerate adoption in the first fiscal year, aiming to get off to the same start we did with Nintendo Switch.
“The limits of our hardware production capacity were not a factor in setting our sales volume forecast. Additionally, the tariff situation in the U.S. or a possibility of a recession did not affect our sales volume forecast either. In order to achieve sales of 15 million units, we will need to manufacture the hardware in quantities greater than that. Our first goal is to get off to the same start we did with Nintendo Switch, and we are working to strengthen our production capacity so we can respond flexibly to demand.”
Furukawa added Nintendo’s “goal with Nintendo Switch 2 hardware sales is to get off to the same start as we did with Nintendo Switch. We recognize the positive feedback from the Nintendo Switch 2 Experience events and the situation with applications for randomly selected drawings for pre-orders on My Nintendo Store in Japan.
“But the Nintendo Switch 2 hardware is priced relatively high compared to Nintendo Switch, so even if there is momentum around the launch, we know it will not be easy to keep that momentum going over the long term through the holiday season and beyond. We have been working to ramp up Nintendo Switch 2 hardware production since even before we held the Nintendo Switch 2 Experience events and began My Nintendo Store applications. Our sales volume forecast was not determined based on any limit to production capacity.”
Furukawa did reveal the 45 million software forecast “does not include Mario Kart World units that are included in the Nintendo Switch 2 + Mario Kart World bundle.
“When we account for software units bundled with the hardware, the forecast surpasses the roughly 52 million units of software sold for Nintendo Switch in the 10 months after its launch. In setting our software sales volume forecast, we took into consideration the fact that software publishers will have a more robust lineup than at the time of the Nintendo Switch launch, and the availability of Nintendo Switch 2 Edition titles.
“This fiscal year, we will aim for the target we have set as the sales volume forecast, strengthen our production capacity to respond to recent increased demand, and focus on promoting sales in an effort to exceed our forecast. The momentum we have immediately after the Nintendo Switch 2 launch is important, of course, but the first challenge we face is how to sustain that momentum and carry it into the holiday season.”
A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can follow the author on Bluesky.
Full Article – https://www.vgchartz.com/article/464676/nintendo-president-says-switch-2-higher-price-is-the-reason-for-15-million-sales-forecast/
