While the “Super Mario” maker is diversifying into theme parks and hit movies, around 90 percent of its revenue still comes from the Switch business, analysts say.
Nintendo delayed pre-orders for the Switch 2 in the United States by two weeks as it assessed the impact from President Donald Trump’s global assault on free trade.
But its pre-orders have since sold out in the U.S. market and elsewhere, with the company boasting of particularly high demand in Japan.
Furukawa said in May that Nintendo’s financial projections are based on the assumption of U.S. tariffs of 10 percent on products produced in Japan, Vietnam, and Cambodia, and 145 percent on China.
“Hardware for North America is mainly produced in Vietnam,” he added.
Trump’s hefty so-called “reciprocal” tariff of 46 percent on goods from Vietnam is on pause, while those on China have been slashed.
Tariff uncertainty could in fact push consumers to buy a Switch 2 sooner, because they are worried that the price could go up, Yang said.
