Nintendo reported a significant decline in Switch 2 sales during its fiscal second quarter ending September 30, with unit sales reaching 2.67 million, representing a 41% decrease compared to the same period in the previous year. The quarterly sales figure also trailed the prior quarter’s performance of 3.82 million units.
The company attributed the downturn partly to price increases implemented across multiple markets. Nintendo raised Switch 2 prices in the United States, Canada, and Japan during the quarter, following earlier price adjustments in Japan. Supply constraints and surging costs for memory chips, a critical component in the console’s manufacture, have pressured the company’s pricing strategy as the global semiconductor market faces a shortage amid elevated demand.
Despite the weak quarterly performance, Nintendo maintained its full-year sales guidance at 16.5 million units for the fiscal year ending in March 2027. The company released several games during the period, including “Tomodachi Life: Living the Dream” and “Pokémon Pokopia,” which achieved unexpected viral success. However, analysts noted the absence of major flagship titles, with expectations now focused on “The Legend of Zelda: Ocarina of Time,” a remake released on Thursday.
Industry observers expressed concern about Nintendo’s ability to sustain momentum without a stronger pipeline of blockbuster titles. Serkan Toto, CEO of Kantan Games, told CNBC that the Ocarina of Time remake alone may prove insufficient to satisfy investors, particularly given the console’s elevated price point. He emphasized that successful hardware sales increasingly depend on compelling game releases, urging Nintendo to accelerate its development schedule for the coming fiscal year.
The company has signaled plans to release new Pokémon titles in 2027, which could potentially support hardware sales growth in subsequent periods.
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