Nintendo keeps Switch 2 forecast unchanged despite hot start

Nintendo Co. sold more than 6 million units of its Switch 2 console over its first seven weeks on the market, but kept its full-year forecast unchanged.

The Kyoto-based company said on Friday that it still expects to sell 15 million units of its next-generation hardware by March, maintaining what’s widely seen as a conservative view. The company said that new U.S. tariffs did not have a significant impact on its forecast.

The record-setting pace of early sales of the Switch 2 pushed Nintendo’s revenue up 132% in the June quarter, though operating profit was largely unchanged from the prior year at $378 million. The company more than doubled its advertising spending to promote the new launch and its marquee title – Mario Kart World, which sold more than 5 million units – was most commonly bundled with the hardware and effectively discounted.

Released on June 5, the $450 Switch 2 set highs for global sales and reversed a decline in spending on video game hardware in the U.S. The Switch 2 brought in 8.67 million software sales through the end of June. Nintendo is ramping up production, saying that demand for the new console exceeds supply in many countries.

New tariffs introduced by the U.S. government may hamper the profitability of Nintendo’s hardware lineup over the coming months, even with the company downplaying their impact on outlook. The Japanese entertainment giant ships most of its U.S.-bound machines from Vietnam and those will be subject to a 20% levy under the Trump administration’s tariff regime. Nintendo President Shuntaro Furukawa has said the company may have to raise prices, depending on the situation.

“We expect the overall hardware segment to fall into operating loss” once the 20% tariff kicks in, UBS Securities analyst Yijia Zhai wrote in a report before Nintendo’s announcement. “From the next fiscal year onward, there is a possibility that the price of the Switch 2 may be raised.”

Sustaining the strong early momentum into this year’s holiday shopping season won’t be easy, especially with the Switch 2 being the most expensive piece of hardware Nintendo has ever sold, according to earlier comments from Furukawa.

The company will strengthen its lineup of Switch 2 exclusives next quarter with Pokémon Legends: Z-A, which will be available on Oct. 16.