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Nintendo Profit Rises as Switch 2 Unit Sales Slow

Software and IP revenue, helped by a U.S. tariff refund, pushed operating profit higher despite weaker Switch 2 hardware demand.

Overview

  • Nintendo reported on Thursday that net sales for April–September fell to ¥966.0 billion while operating profit rose 49.1% to ¥216.5 billion.
  • The company said Switch 2 has reached a lifetime installed base of 26.35 million units and sold 6.49 million consoles in the first half, a 37.4% drop versus the prior year.
  • Software sales strengthened, with 24.49 million Switch 2 game units sold (up 18.8%) and 65.73 million original Switch game units sold (up 6.8%), led by Mario Kart World and Tomodachi Life: Living the Dream.
  • Nintendo attributed higher margins to steady digital and packaged software sales plus a one‑time U.S. IEEPA tariff refund, and noted rising memory‑chip costs prompted a Switch 2 price increase and a record inventory value of ¥814.57 billion.
  • The company left its full‑year forecast unchanged and highlighted upcoming Switch 2 releases, including a Zelda remake and Metroid Ravenous, that it expects to help boost adoption over the holiday period.