Nintendo warned it might but enhance the price of its long-anticipated new console, after projecting weaker-than-expected preliminary gross sales of the Swap 2.
The Kyoto-based firm expects shipments of the Swap 2 to succeed in 15 million models within the yr to March, shy of the 16.8 million common of analyst estimates compiled by Bloomberg. Nintendo forecast annual working revenue of JPY 320 billion ($2.2 billion or roughly Rs. 18,768 crore), additionally considerably wanting estimates. That was regardless of overwhelming pre-orders for the $450 (roughly Rs. 38,390) gadget and market expectations that the Swap 2 can be the fastest-selling console in historical past.
Underscoring the uncertainty Nintendo’s grappling with, executives warned they might hike costs for the Swap 2 within the US, relying on how Trump administration tariffs work out. The Japanese firm now makes the vast majority of its gaming units in China, a goal of Washington’s marketing campaign to shake up international commerce.
“As for pricing within the US, there’s a risk that changes could also be made sooner or later relying on market situations,” President Shuntaro Furukawa advised analysts on a name after the report on Thursday. The corporate is factoring in a tariff impression of tens of billion yen on revenue this yr, he added, in line with a recording of the decision reviewed by Bloomberg Information.
Nintendo’s first goal is to match the unique Swap’s debut again in 2017, when it bought round 15 million models in its first 10 months, he added, stressing that the determine doesn’t replicate any provide constraints. The corporate is factoring in lots of elements past simply the price of manufacturing and is eager to make sure sturdy preliminary momentum for the brand new platform, Furukawa mentioned.
“These forecasts are most likely going to separate the Nintendo-watching viewers,” mentioned Pelham Smithers, managing director at Japan fairness analysis agency Pelham Smithers Associates. “You should have a superb portion who will suppose administration is being cautious, realizing that there is little upside in being too bullish at this stage. Nevertheless, you may even have a portion that might be involved that Nintendo could look to maintain the Swap 2 in brief provide by means of this fiscal yr.”
In his feedback to analysts, Furukawa mentioned the corporate’s objectives weren’t a matter of any provide constraints and it was making an allowance for the upper {hardware} value.
Nintendo is gearing up for a once-in-a-decade handover, transferring on from the eight-year-old Swap and rekindling progress following years of tepid earnings and waning demand for the unique. Within the March quarter, Nintendo’s working revenue fell 46 % to JPY 35 billion (roughly Rs. 2,057 crore), concluding a fiscal yr by which the corporate bought 10.8 million Swap consoles and 155.4 million software program copies.
The earnings comply with surging pre-orders of the Swap 2 that prompted President Shuntaro Furukawa to warn that many customers will not have the ability to get the brand new console on the discharge date in Japan, whereas orders rapidly bought out at many US retailers.
What Bloomberg Intelligence Says
Nintendo’s softer-than-expected fiscal 2026 gross sales and revenue steerage vs. consensus is in keeping with an traditionally conservative stance, which tariffs most likely justify. Optimistic pre-order developments in Japan, the US and different key markets recommend the corporate would possibly obtain the 15 million-unit gross sales purpose earlier for its Swap 2 video-game console. The 45 million software-unit purpose additionally appears beatable, with the sturdy lineup of third-party video games — together with Cyberpunk 2077 — and in-house ones serving to activate or entice upgrades amongst Nintendo’s 366 million customers.
— Nathan Naidu, BI analyst
In some other yr, the appreciable social media buzz across the Swap 2, together with the console’s pre-order momentum, would recommend rosy gross sales forward. However US President Donald Trump’s tariff insurance policies and fears that they might pressure Nintendo to boost costs are denting inventor sentiment.
The corporate, which produces the majority of its Swap consoles in China, has lifted the value tag on some Swap 2 equipment and warned clients within the US that costs could rise on different merchandise relying on the tariffs imposed. The Swap 2 is already Nintendo’s costliest console.
© 2025 Bloomberg LP
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