Nintendo Profit Jumps 53.5% on Switch 2 and Mario Movie
The Kyoto company earned $933 million in the April-June quarter even as sales slipped 9.5% and tariffs and pricier memory chips weighed on results.
TOKYO — Nintendo Co. said Thursday that its first-quarter profit surged 53.5%, as its recent Super Mario movie and steady demand for the Switch 2 console lifted the Japanese video-game company's bottom line.
The Kyoto-based company reported 147.4 billion yen ($933 million) in profit for April through June, up from 96 billion yen a year earlier. Quarterly sales fell 9.5% to 517.8 billion yen ($3.3 billion).
Working against Nintendo, as with many Japanese companies, were President Donald Trump's tariffs and the rising price of memory chips and other components.
Nintendo said global sales of Switch 2 machines totaled 3.82 million units in the quarter. Its older Switch business is still holding up, with both console and software sales continuing even as the newer machine remains in demand.
In Switch 2 software, "Yoshi and the Mysterious Book," released in May, and "Pokemon Pokopia," released last year, were popular, contributing to software sales of 9.46 million units for the quarter, according to the company. "The Super Mario Galaxy Movie" took in 517.8 billion yen ($3.3 billion), much of it from overseas.
The Switch 2, which went on sale in June last year, is "still going strong," the company said. Nintendo said it hopes to build on that momentum by adding games to the lineup, including "Splatoon Raiders," which went on sale last month, and titles in the works such as "The Legend of Zelda: Ocarina of Time."
For the full fiscal year through March 2027, Nintendo is forecasting profit of 310 billion yen ($2 billion), down nearly 27% from the previous fiscal year, on annual sales slipping 11% to 2.05 trillion yen ($13 billion).
The company projects Switch 2 console sales of 16.5 million units for the fiscal year, down nearly 17% from the previous year. Console sales tend to drop after a strong first year. Nintendo expects game software sales of 60 million units for the year, up 23%.
Nintendo shares jumped 2.9% in Tokyo trading after the earnings were announced.
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