Nintendo reported that its fiscal first-quarter profit and revenue exceeded estimates, despite a sharp decline in Switch 2 console sales:
- Revenue: 517.8 billion yen ($3.28 billion) versus expected 444.96 billion yen:
- Net profit: 147.4 billion yen versus expected 78.30 billion yen:
Shares of the Japanese gaming giant closed 2.87% higher ahead of the earnings release:
The company maintained its annual forecast, expecting net sales of 2.05 trillion yen:
Sales of the Switch 2 fell 34.4% from a year earlier, while sales of the original Nintendo Switch dropped 31.8%:
The company noted that consumers continued to adopt the Switch 2 despite lower hardware sales, supported by the release of new titles:
Nintendo has factored in nearly a 100 billion yen impact from higher component prices, particularly for memory, and tariffs into its cost of sales:
Nintendo's game sales were driven by the solid performance of Tomodachi Life: Living the Dream, which sold 7.94 million units, and Pokémon Pokopia, which sold 1.27 million units:
The company stated that releasing new titles at regular intervals is crucial for expanding the Switch 2's installed base:
In the Japanese market, where Nintendo raised Switch 2 prices, hardware sell-through has remained solid:
Nintendo also reported that "The Super Mario Galaxy Movie" has generated over $1 billion in global box office revenue:
