The switch is being launched between the uncertainty about the drama and revenue in early June 2, and now Nintendo has put a dollar on how much negative impact its predictions have to be predicted.
Talking to analysts and investors Briefing the latest income of the companyNintendo’s president, Nintendo, said that Nintendo has had the negative effects of “negative effects of tens of billions of yen” at the profit level. Ten billion yen are about $ 67 million, so this is not a small amount.
Frookawa said Nintendo is eliminating US tariff rates on April 10. It’s now in the middle of May, and since then things have been ready. Right now, US and China made a deal This reduces its previous 145 % tariff rate on China by 30 %, which reduces its rate from 125 % to 10 %. The contract continues for 90 days, which will take it beyond the date of release of switch 2.
Nintendo was based on the tariff rate on April 10, in view of the prediction of Nintendo, with different calculations in Nintendo that the revenue on goods from China has been widely reduced. This has been a fluent situation for many other companies carrying goods from Nintendo and China to the United States (switches 2 consoles are produced in China, Vietnam and Cambodia).
Frookawa made these comments during Nintendo’s latest revenue briefing on May 8, and the English translation was not posted today, May 13. The United States and China announced their joint trade agreement on May 12.
Frookawa added that a low margin of switch 2 profits is expected to have the original switch, which has been selling since 2017.
“Our basic policy is that for any country or region, if prices are implemented, we recognize them as a part of the cost and add them to the price. However, this year, our first new video game system has been identified in eight years, so it has a speedy and accelerating video, so it has a speedy and accelerated platform. To increase, and to expand its foundation quickly.
The executive added that if there are further changes to tariff policies for China and other markets, Nintendo will consider that “if any type of adjustment is appropriate,” if any.
For the context, Nintendo is Projecting Operating profit in the profitability of 320 billion yen and 380 billion yen in the general profit for the financial year ending March 31, 2026, as well as 300 billion yen attributed to parent owners.
For Fiscal year that ended on March 31, 2024Nintendo made an operating profit of 528.9 billion yen, a common profit of 680.5 billion yen, and 490.6 billion yen in profitable profit by parent owners. For the financial year that ended on March 31, 2025Nintendo made an operating profit of 282.5 billion yen, which is a common profit of 372.3 billion yen, and 278.8 billion profits are attributed to parent owners.
Nintendo is expecting 15 million switches to sell 2 units during the current financial year, ending March 31, 2026, and is equivalent to the original switch in its first 10 months in the market. Frokawa said the switch 2 of the switch 2 is more expensive with the “relatively high” price-inflation than the original switch-offers one of the “challenges to adopt the system initially”.
“The boundaries of our hardware production capacity were no factor in determining our sales volume. Additionally, the possibility of tariff situation or recession in the United States did not affect the prediction of our sales volume,” said Frookawa.
Nintendo kept his big switch 2 directors the same day on April 2, the same day, US President Donald Trump announced his “Independence Day” prices on China. In response, Nintendo announced that the switch 2 forsakers would not start on April 9, but instead delayed at the end of the month, many people wondered if this would increase the price of Nintendo Console. This didn’t happen, but the company raised prices on some switch 2 accessories.