TOKYO (AP) — Nintendo, the renowned Japanese video game manufacturer known for iconic franchises such as Super Mario and Pokemon, has announced an impressive 18.6% increase in net profit for the first fiscal quarter, attributed to the soaring demand for its recently launched Switch 2 console. The Kyoto-based company reported a profit of 96.03 billion yen (approximately $640 million) for the three-month period from April to June, a rise from nearly 81 billion yen in the same period last year.
Nintendo's quarterly sales saw a remarkable upward trajectory, more than doubling to reach 572.36 billion yen (around $3.8 billion). The company revealed it successfully sold 3.5 million Switch 2 consoles worldwide within just the first four days following its release on June 5, marking an unprecedented sales pace for any Nintendo console. The demand for the new device has remained robust, further fueling sales growth.
The Switch 2's higher price point has also contributed to this upward sales momentum, retailing at approximately $450 compared to the original Switch, which debuted in 2017 at around $300. The new gaming console has garnered a lot of attention among consumers, with particularly popular titles like “Mario Kart World” and “Donkey Kong Bananza” driving sales. Additionally, the game “Pokemon Friends,” which was released last month for the older Switch, is compatible with the new hardware, expanding its appeal.
The Switch consoles serve a dual purpose, functioning as both portable handheld devices and home consoles, appealing to a diverse range of gaming enthusiasts. Despite the impressive sales figures, Nintendo has maintained its forecast, projecting sales of 15 million Switch 2 units for the fiscal year. Furthermore, the company has left its annual profit forecast unchanged at 300 billion yen (approximately $2 billion) for the year ending March 2026, reflecting an anticipated 8% year-on-year growth.
In the stock market, Nintendo's shares have experienced a significant upward trend over the past year, appreciating more than 50%. However, ahead of the earnings announcement, the stock dipped nearly 1%. While there are some concerns regarding the potential impact of tariffs imposed by President Donald Trump on Japanese exports, these issues have yet to significantly influence Nintendo’s overall financial projections for the future.
This financial report highlights the success of Nintendo's strategic marketing and product development efforts, emphasizing the potential for sustained growth in the competitive gaming industry as the company continues to innovate and respond to market demands.
