TOKYO: Nintendo more than doubled its revenue in the fiscal first quarter, buoyed by explosive sales of its newly launched Switch 2 console, the company said Friday.
The Japanese gaming giant reported revenue of ¥572.3 billion ($3.8 billion) for the quarter ending June 30, a 132% increase from the same period last year and well above analyst expectations of ¥474.84 billion. Operating profit rose to ¥56.9 billion, also beating forecasts.
The surge was driven by the June 5 release of the Switch 2, which sold 5.82 million units in its first month, including 3.5 million in the first four days — the fastest launch in Nintendo’s history.
Sales from Nintendo’s dedicated video game platform business jumped 142.5% year-over-year to ¥555.5 billion, fueled by the higher price point of the Switch 2 compared to its predecessor. Software sales also saw strong momentum, with 8.67 million units sold, led by launch title Mario Kart World, which accounted for 5.63 million units.
However, revenue from Nintendo’s intellectual property-related business declined 4.4%, attributed to waning income from “The Super Mario Bros. Movie.”
Despite the record-breaking quarter, Nintendo maintained its full-year guidance, projecting revenue of ¥1.9 trillion and operating profit of ¥320 billion for the fiscal year ending March 2026.
Shares of Nintendo have rallied nearly 40% year-to-date, driven by investor enthusiasm for the Switch 2. The company reiterated its forecast of 15 million unit sales for the console this fiscal year, though analysts suggest the target may be conservative.
One potential headwind is the impact of new U.S. tariffs on Vietnamese-manufactured goods, which could affect Nintendo’s supply chain. Still, analysts at Morningstar remain optimistic.
“Although Nintendo’s profitability is expected to decline in the short term due to higher tariff rates, the company will recoup the losses in the long term by selling more games to a larger user base,” said Kazunori Ito, director of equity research at Morningstar.
Nintendo plans to bolster production to meet demand and maintain momentum through the holiday season, with upcoming releases including Pokémon Legends: Z-A and Metroid Prime 4: Beyond.