Nintendo reported fiscal first quarter results for the period ended June 30, beating analyst estimates for revenue and profits. However, the Nintendo Switch 2 console sales saw a sharp decline coming off the console launch a year ago.
The Kyoto, Japan-based game company reported revenue of 517.8 billion Japanese yen ($3.28 billion), compared with 444.96 billion yen expected. Net profit was 147.4 billion yen compared with 78.30 billion yen expected.
The company held to its previous forecast for the year ending March 2027 announced in May, keeping its annual net revenues estimate unchanged at 2.05 trillion yen.
Switch 2 console sales were 3.82 million, down 34.4% from a year earlier. Sales of the Nintendo Switch dropped to 660,000 units sold, down 31.8%. Tomodachi Life: Living the Dream sold 7.94 million copies, while Pokémon Pokopia sold 1.27 million units. That helped Nintendo hit its financial targets.
Part of Nintendo’s expectations included a 100 billion yen impact from higher memory chips prices, as well as tariffs, which raised costs.
In the Japanese market, Nintendo raised Switch 2 prices in May. In the U.S., Nintendo is raising its retail price by $50 from $450 to $500 on September 1.
Beyond games, Nintendo said “The Super Mario Galaxy Movie” has generated more than $1 billion in global box office revenue since its worldwide release on April 1, making it the second highest-grossing film ever based on a video game.