TOKYO (AP) – Nintendo has reported a remarkable 52% surge in its annual profit for the fiscal year that ended in March, driven largely by strong sales of its newly released Switch 2 consoles and associated software titles. The renowned Japanese video-game giant, known for iconic franchises such as Super Mario and Pokémon, has also announced a price increase for its gaming devices, citing difficult market conditions.
For the fiscal year, Nintendo recorded a net profit of 424 billion yen ($2.7 billion), significantly up from nearly 279 billion yen the previous year. This impressive financial performance was complemented by an annual sales increase of 99%, totaling 2.3 trillion yen ($15 billion) compared to 1.2 trillion yen a year earlier. This growth is attributed to sustained demand for the Switch 2, despite a noted decline in sales of the first-generation Switch.
As part of the company's strategy to adapt to changing market conditions, Nintendo announced plans to raise the price of the Switch 2 in Japan from 49,980 yen ($318) to 59,980 yen ($382), effective May 25. In the United States, the price will increase from $449.99 to $499.99, effective in September.
Nintendo, headquartered in Kyoto, Japan, did not elaborate on the specifics behind the price adjustments, but indicated that all major Japanese exporters are facing challenges including tariffs imposed by U.S. President Donald Trump, along with various rising costs exacerbated by geopolitical issues such as the war in Iran.
Despite the impressive annual performance, Nintendo anticipates an 11% decline in profit for the fiscal year through March 2027, projecting a profit of 2.1 trillion yen ($13 billion). This forecast takes into account the planned increases in product pricing.
In addition to its gaming success, Nintendo's recent film, "The Super Mario Galaxy Movie," has been a box office hit, grossing over $800 million since its release a month ago. Among its successful software releases are titles such as "Mario Kart World" and "Donkey Kong Bananza," with the game "Tomodachi Life: Living the Dream" selling over 3.8 million units shortly after its launch two weeks ago.
Looking ahead, Nintendo expects to sell approximately 16.5 million units of the Switch 2 during the fiscal year ending in March 2027, which represents a nearly 17% decline from the 19.86 million units sold in the previous fiscal year. However, the company forecasts a continued growth in software sales for the Switch 2, estimating around 60 million units, an increase of 23% from the previous total of 48.7 million.
It is common for gaming consoles to experience robust sales immediately following their launch, followed by a decline, while software sales often continue to grow over time. The Switch itself is a hybrid console, functioning both as a home gaming device and a portable handheld unit.
Nintendo has pledged to release additional software titles for the Switch 2 this year, including offerings from renowned creators, featuring games such as the latest installment of "Final Fantasy."
Following the announcement of its earnings, Nintendo's stock price saw a notable increase of 3.6%, reflecting investor confidence in the company's future prospects.
