Nintendo's fiscal first-quarter profit and revenue beat estimates, despite Switch 2 sales slump
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- Nintendo beat Q1 revenue and profit estimates, posting 517.8 billion yen ($3.28 billion) vs. 444.96 billion yen expected on revenue and 147.4 billion yen vs. 78.30 billion yen expected on net profit, sending shares up 2.87% ahead of the release
- Switch 2 hardware sales fell 34.4% year-over-year to 3.82 million units, while original Switch sales dropped 31.8% to 0.66 million units, even as Nintendo said consumer adoption continued
- Nintendo held its full-year net sales forecast unchanged at 2.05 trillion yen for the year ending March 2027, factoring in roughly 100 billion yen in higher memory and tariff costs
- Tomodachi Life: Living the Dream sold 7.94 million units and Pokémon Pokopia 1.27 million units, anchoring game software performance
- Nintendo raised the US Switch 2 price by $50 to $499.99 effective September 1, after lifting Japanese prices on May 25; Japanese sell-through has remained solid
- The Super Mario Galaxy Movie has surpassed $1 billion in global box office revenue since its April 1 release, making it the second-highest-grossing film ever based on a video game
Why it matters: Nintendo nearly doubled analyst profit expectations (147.4 billion yen vs. 78.30 billion yen) even as flagship hardware sales dropped more than a third, showing software attach and price hikes are carrying the quarter while memory inflation tied to AI demand and tariffs compress margins — keeping full-year guidance flat at 2.05 trillion yen.
