Nintendo reports huge profit increase following jump in prices for U.S. customers
Nintendo has reported a significant surge in its net profit for the first fiscal quarter (April-June) of 2025.
The Kyoto-based gaming giant announced a net profit of 96.03 billion yen ($638 million), an impressive 18.6 percent increase compared to the same period last year.
This reverses expectations raised during their third-quarter financial results, where the company revised its expected full-year earnings downwards due to low sales of both consoles and games.
Nintendo President Shuntaro Furukawa also previously stated in May that the company expected there to be negative impacts on earnings from higher U.S. import tariffs.
While a trade deal between Japan and the United States was recently finalized, introducing a 15 percent tariff on certain products, Nintendo clarified in its release that this specific agreement will not affect its current earnings forecast.
While the company has maintained the launch price of the Switch 2 at $449.99, it has implemented price increases on older Switch consoles and some accessories to offset some of these tariff-related costs.
The increase in profits has been largely driven by the successful launch of its new gaming console, the Nintendo Switch 2.
The Switch 2, a hybrid console like its predecessor, boasts a larger liquid-crystal display, enhanced internal storage, and updated graphics and controllers, supporting 1080p resolution and a 120 Hz refresh rate in handheld mode, and 4K resolution at 60 Hz when docked.
During the April-June quarter, Nintendo’s sales saw a dramatic 2.3-fold increase, reaching 572.36 billion yen.
Operating profit also rose by 4.4 percent to 56.93 billion yen, indicating strong operational efficiency amidst the new hardware rollout.
Hardware sales were a major contributor to these positive results.
Nintendo sold 5.82 million units of the Switch 2 in its debut quarter, a substantial jump from the 2.1 million units of the original Switch sold in the corresponding period last year.
This initial sales velocity surpassed internal expectations, with Nintendo reportedly strengthening production to meet the high demand.
Software sales also demonstrated healthy growth.
Nintendo sold a total of 33.07 million copies of games across its platforms during the three-month period.
Of this, 8.67 million copies were specifically for the new Switch 2, contributing significantly to the overall increase from the 30.64 million software units sold for the original model a year prior.
A standout title contributing to the Switch 2’s early success is “Mario Kart World.”
Released concurrently with the console on June 5th, this new kart racing game recorded sales of 5.63 million copies.
“Mario Kart World” introduces innovative elements to the beloved series, including an open-world design, off-roading techniques, and an elimination mode, allowing up to 24 players, twice the number of previous “Mario Kart” titles.
The game’s strong performance, alongside its inclusion in a popular hardware bundle, contributed to its near one-to-one attachment rate with the new console.
Despite the impressive initial performance, Nintendo has opted to maintain its conservative earnings forecast for the full fiscal year ending March 2026.
The company continues to project a 7.6 percent rise in net profit to 300 billion yen on sales of 1.9 trillion yen, which would represent a substantial 63.1 percent increase year-on-year.
For the full business year, Nintendo aims to sell 15 million Switch 2 consoles and 45 million copies of game software for the new device.
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