Nintendo projects 15 million units of the Switch 2 will be sold as it prepares for the release.
Certainly! Here’s a rewritten version with neutral language:
<p>Attendees walk past an advertising board during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025. Isabel Infantes | Reuters</p>
<p>Nintendo announced on Thursday that it expects to sell 15 million units of its new Switch 2 console in the fiscal year ending March 2026. This is the company's first sales forecast since unveiling the successor to the popular Switch device, scheduled to launch in June.</p>
<p>Nintendo also reported its fiscal fourth quarter and full-year results. Here's a comparison of Nintendo's performance in the fiscal fourth quarter ended Mar. 31 against estimates:</p>
<ul>
<li><strong>Revenue:</strong> 208.7 billion Japanese yen ($1.45 billion), compared to 216.16 billion yen expected.</li>
<li><strong>Net profit:</strong> 41.6 billion yen, versus 33.91 billion yen anticipated.</li>
</ul>
<p>Revenue dropped 24.7% in the fourth quarter from the previous year, while profit decreased nearly 50%. This decline was largely anticipated as consumers await the Switch 2 and have held off on purchasing the current console.</p>
<p>Earlier in the year, Nintendo revised its sales forecast for the Switch to 11 million units for the year ending Mar. 31. On Thursday, the company reported selling 10.8 million units of the Switch, just short of its own forecast and down 31% year-on-year.</p>
<p>Market research firm Omdia projects Nintendo will sell 14.7 million Switch 2 units in 2025, which would be approximately 10% more than the original Switch's debut year. George Jijiashvili, Omdia's senior principal analyst, stated, "Switch 2 will launch into a stronger position than its predecessor, with over 100 million active Switch users providing a solid foundation for adoption."</p>
<p><strong>Tariffs in focus</strong></p>
<p>Investors are looking closely at Nintendo's forecast for the upcoming fiscal year. The company expects net sales of 1.9 trillion yen, a 63% year-on-year increase, but slightly below estimates of 2 trillion yen. It anticipates net profit will grow by 7.6% to 300 billion yen, which is below the anticipated 388.8 billion yen.</p>
<p>Nintendo noted that all its forecasts account for U.S. tariff rates effective Apr. 10, following a pause in U.S. tariffs imposed by recent government policies. The company had previously delayed pre-orders for the Switch 2 in the U.S. after the announcement of substantial tariffs impacting many countries. Nintendo's consoles are produced in Vietnam, which is subject to a 46% duty once the pause is lifted.</p>
<p>President Shuntaro Furukawa highlighted that any further tariffs could lead to necessary price adjustments, potentially reducing demand in the U.S. market. According to reports, this could affect profits by tens of billions of yen.</p>
<p>Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games, described Nintendo's sales forecasts as typically conservative, noting the current tariff environment adds additional caution for the company.</p>
<p>He stated, "The situation around tariffs creates an unclear future for Nintendo, making it challenging for any hardware manufacturer to make sales predictions." Toto also mentioned the implications if tariffs on imports from countries like China or Vietnam remain elevated.</p>
<p><strong>Switch 2 fuels stock rally</strong></p>
<p>Investors are now focused on the anticipated performance of the Switch 2 upon its release. The console is set to start at $449.99 in the U.S. and boasts improved features over its predecessor. In addition to the forecast of 15 million unit sales for the fiscal year ending March 2026, Nintendo projects selling 45 million software units during the same period.</p>
<p>Software is vital for any console's success, and Nintendo indicated that the Switch 2 will launch with two titles — "Mario Kart World" and "Nintendo Switch 2 Welcome Tour." There will also be Switch 2 versions of existing games such as "Zelda: Breath of the Wild." The company is leveraging its popular characters, such as Mario and Zelda, to enhance the appeal of the Switch 2.</p>
<p>This new console follows the launch of the original Switch in 2017, which has become Nintendo's second-best-selling console, with over 150 million units sold. The firm extended the hardware's lifecycle with successful games featuring beloved characters and franchises.</p>
<p>Investor optimism remains strong, with shares rising approximately 30% this year and 64% over the past 12 months.</p>
This revised version removes references to external sites while maintaining the focus on the content itself.
