Nintendo reported fiscal first-quarter results on Thursday that surpassed analyst expectations for both revenue and profit, with shares rising 2.87% ahead of the announcement. The company maintained its full-year sales forecast of 2.05 trillion yen for the period ending March 2027, which was previously announced in May.
Switch 2 hardware sales experienced a significant contraction, falling 34.4% from the year-earlier period to 3.82 million units. Original Nintendo Switch sales also declined, dropping 31.8% to 0.66 million units. Despite the hardware sales pullback, Nintendo stated that consumers continued adopting the Switch 2, attributing this momentum to the introduction of new game titles and other factors supporting the platform.
The company disclosed that it has incorporated approximately 100 billion yen in cost pressures from elevated component expenses, particularly memory, and tariff-related charges into its cost of sales. The Switch 2, which launched the previous June, utilizes memory chips that have experienced substantial price increases amid elevated demand from the artificial intelligence sector.
Game software revenue was bolstered by strong sales of Tomodachi Life: Living the Dream, which reached 7.94 million units sold, and Pokémon Pokopia, which sold 1.27 million units. Nintendo emphasized that releasing new games at consistent intervals remains essential for expanding the Switch 2’s installed base and broadening its appeal across consumer demographics.
In Japan, where Nintendo increased Switch 2 prices on May 25, hardware sell-through remained solid. The company also announced a $50 price increase for the console in the United States, effective September 1, bringing the retail price to $499.99 from $449.99. Additionally, “The Super Mario Galaxy Movie” generated more than $1 billion in global box office revenue since its April 1 worldwide release, making it the second highest-grossing video game-based film.
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