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Nintendo Profit Climbs as Switch 2 Shipments Fall 37%

Stronger software sales, a large rise in IP income plus a one-off US tariff refund offset weaker hardware demand, letting Nintendo keep its full-year guidance.

Overview

  • Nintendo announced on Thursday that for the six months to Sept. 30, 2026 it posted net sales of ¥966.0 billion and operating profit of ¥216.5 billion.
  • Switch 2 hardware shipments fell 37.4% year-on-year to 6.49 million units in the period while lifetime Switch 2 sales reached 26.35 million.
  • Switch 2 software sales rose 18.8% to 24.49 million units and several recent releases became multi-million sellers, keeping digital revenue strong.
  • The company reported a record inventory value of ¥814.57 billion as it built stock to hedge memory shortages, and president Shuntaro Furukawa said Nintendo does not plan further Switch 2 price increases.
  • A one-off refund of US IEEPA tariffs and an ¥62.7 billion jump in IP-related income, driven by strong film engagement, materially boosted profit as Nintendo holds its fiscal-year forecast and looks to holiday releases to lift demand.