Japanese gaming giant reports strong quarterly earnings as Switch 2 sales approach 4 million units and software demand remains robust
Tokyo: Nintendo reported a sharp rise in first-quarter profit as strong demand for its Switch 2 gaming console and continued popularity of its blockbuster Super Mario movie boosted earnings.
The Kyoto-based gaming company posted net profit of 147.4 billion yen ($933 million) for the April-June quarter, up 53.5% from 96 billion yen in the same period a year ago.
Despite the profit growth, quarterly sales fell 9.5% to 517.8 billion yen ($3.3 billion).
Nintendo said sales of the Switch 2 reached 3.82 million units worldwide, highlighting continued consumer demand for the console. The company’s original Switch platform also continued to generate sales of both hardware and software, supporting overall performance.
Popular software titles during the quarter included “Yoshi and the Mysterious Book”, released in May, and “Pokemon Pokopia”, which helped drive software sales of 9.46 million units.
The company also benefited from the ongoing success of “The Super Mario Galaxy Movie”, which generated 517.8 billion yen ($3.3 billion) in revenue, much of it from international markets.
Challenges from tariffs and costs
Nintendo said profitability was affected by several external pressures, including US tariffs and rising component costs.
Like many Japanese manufacturers, the company faces higher expenses for memory chips and other electronic components, as well as uncertainty linked to US trade policies.
Full-year outlook remains cautious
Despite the strong quarterly performance, Nintendo maintained a cautious outlook for the fiscal year ending March 2027.
The company forecasts:
- Net profit: 310 billion yen ($2 billion), down nearly 27% year-on-year
- Annual sales: 2.05 trillion yen ($13 billion), down 11%
- Switch 2 console sales: 16.5 million units
- Game software sales: 60 million units, up 23%
Nintendo noted that console sales typically slow after the initial launch phase, even as software sales continue to grow.
Expanding game lineup
To maintain momentum, Nintendo plans to expand its portfolio of games for the Switch 2 platform.
Recent releases include “Splatoon Raiders”, which launched last month, while upcoming titles include a new version of “The Legend of Zelda: Ocarina of Time.”
Investors reacted positively to the results, with Nintendo shares rising 2.9% in Tokyo trading following the earnings announcement.
Source: Emirates 24|7