Nintendo Surpasses Estimates Despite Switch 2 Sales Decline

Nintendo reported its fiscal first quarter results for the period ended June 30, exceeding analyst estimates for revenue and profits. The Kyoto-based game company's revenue reached 517.8 billion Japanese yen ($3.28 billion), surpassing expectations of 444.96 billion yen.

The company's net profit was 147.4 billion yen compared to the estimated 78.30 billion yen, meeting its financial targets. Nintendo maintained its forecast for the year ending March 2027, keeping annual net revenues at 2.05 trillion yen announced in May.

A significant drop in sales of the Switch 2 console was reported, with units sold down 34.4% from a year earlier. The company attributed this decline to higher memory chip prices and tariffs, which increased costs by 100 billion yen. Additionally, Nintendo raised the price of the Switch 2 in Japan in May and will increase the retail price in the U.S. by $50 on September 1.

The success of games such as Tomodachi Life: Living the Dream (7.94 million copies sold) and Pokémon Pokopia (1.27 million units sold) contributed to Nintendo's financial performance. Furthermore, the company's movie adaptation 'The Super Mario Galaxy Movie' has generated over $1 billion in global box office revenue since its release on April 1.