Nintendo sees profit surge thanks to strong Switch 2 sales

In Japan, video game maker Nintendo has reported noteworthy financial growth in its latest fiscal quarter. The company announced a substantial increase of 18.6% in net profit for the first fiscal quarter, which spans from April to June. This rise in profit can be attributed to the remarkable demand for its newly launched Switch 2 console, which hit the market on June 5. The financial report revealed that Nintendo achieved a profit totaling 96.03 billion yen, approximately $640 million, up from nearly 81 billion yen in the previous quarter. It signifies a promising trend, particularly in the realm of video game consoles, as the company's overall success demonstrates resilience in a competitive industry. During its April-June revenue period, Nintendo's sales skyrocketed, more than doubling to reach 572.36 billion yen, equivalent to about $3.8 billion. Such impressive sales figures were bolstered by the strong performance of the Switch 2, which broke records by selling 3.5 million units within just four days of its release. The new console, priced at about $450, has drawn attention partly due to its features that enable it to function both as a portable gaming device and a home console. This higher price point has contributed to increased sales momentum, indicating a robust consumer interest. Fans of Nintendo have also welcomed popular titles like “Mario Kart World” and “Donkey Kong Bananza.” Furthermore, the older Switch title, “Pokemon Friends,” is compatible with the Switch 2, thereby enriching the overall gaming experience. This compatibility likely played a role in the console’s swift sales uptake. Nintendo has maintained its forecast to sell an estimated 15 million Switch 2 units during this fiscal year, projecting a solid reception in the upcoming months. The company's steadfast sales expectations indicate a growing confidence in the new product line. Despite some hesitations regarding the broader economic impact of factors such as tariffs imposed by President Donald Trump on Japanese exports, Nintendo has remained resilient. The organization maintained its overall profit forecast for the year ending in March 2026, expecting to earn around 300 billion yen, roughly $2 billion, reflecting a nearly 8% increase compared to the previous year. This stability in outlook suggests that Nintendo's strategic initiatives and new product offerings have positioned it favorably in the gaming market, allowing it to navigate through challenging economic conditions while still achieving profitability.