Nintendo Reports 147.4 Billion Yen Profit Despite Falling Switch 2 Sales

Nintendo Co. reported a net income of 147.4 billion yen ($934 million) for the June quarter, significantly beating the analyst consensus of 77.8 billion yen. While revenue fell nearly 10 percent to 517.8 billion yen, the profit surge was primarily driven by a 39 billion yen positive effect from a weakening yen and refunds from tariffs previously imposed and then rescinded by the United States government.

Hardware performance for the Switch 2 showed a decline, with sales falling 34.4 percent year-over-year to 3.82 million units. Total lifetime sales for the console have reached 23.68 million since its June 2025 launch. The company noted that hardware adoption continues to be supported by new software titles, including Pokémon Pokopia and Tomodachi Life: Living the Dream, though total software sales of 9.5 million units remain below the volumes of the original Switch platform.

To offset nearly 100 billion yen in increased costs from tariffs and AI-driven memory chip price hikes, the company raised Switch 2 prices in Japan on May 25. An additional price increase to $499.99 in the United States will take effect September 1, which likely inflated current hardware demand. Separately, The Super Mario Galaxy Movie surpassed $1 billion in global box office revenue.