Prime Highlights:
- Nintendo is seeing strong growth after the successful launch of its new Switch 2console in June.
- The company raised its sales forecast, expecting to sell 19 million units by March 2026, showing strong global demand.
Key Facts:
- Nintendo’s revenue reached 527.2 billion yen ($3.7 billion)in the quarter ending September 30, beating expectations of 461.7 billion yen.
- The company’s profit rose more than 270% year-on-year, driven by high sales of the Switch 2 and popular game titles.
Background:
Nintendo is seeing strong growth after launching its new Switch 2 console in June. The company now expects to sell 19 million units by March 2026, up from 15 million earlier.
High demand for the console has also boosted Nintendo’s earnings. In the quarter ending September 30, the company reported revenue of 527.2 billion yen ($3.7 billion), well above the expected 461.7 billion yen. Net profit surged to 102.9 billion yen, compared with 63.6 billion yen forecasted, marking a year-on-year revenue increase of over 90% and a profit rise exceeding 270%.
Since its debut, Nintendo has sold 10.36 million units of the Switch 2, including 4.54 million units in the September quarter. Although sales slightly eased after the initial launch rush, the company said demand “remained strong.” Popular game titles such as “Mario Kart World” and “Donkey Kong Bonanza” have fueled the console’s success, with 11.95 million software units sold during the quarter.
The robust sales prompted Nintendo to revise its broader financial outlook. The Kyoto-based firm now expects net sales of 2.25 trillion yen, up from 1.9 trillion yen, and raised its net profit forecast by 17% to 350 billion yen. The Switch 2 continues the legacy of the original Nintendo Switch, which launched in 2017 and became the company’s second-best-selling console after the Nintendo DS.
Some experts had wondered if the Switch 2 was different enough to attract current players, but early sales show that many users are buying it. With the holiday season approaching, investors are watching closely to see if the console’s momentum continues.
Nintendo plans to sustain excitement through a steady stream of new titles, including “Pokémon Legends: Z-A,” “Kirby Air Riders,” and “Metroid Prime 4: Beyond.” The company said it aims to “keep the momentum of released titles and continuously introduce new ones to expand the platform’s user base.”