Nintendo Net Profit Rises 53% on Mario Box-Office Boost and Switch 2 Demand
Solid demand for hardware and entertainment IP drove first-quarter profits higher, though chip costs and trade tariffs weigh on full-year outlook.
Nintendo Co. posted a 53.5% surge in first-quarter net profit, propelled by strong global box-office receipts from its latest theatrical release and steady demand for the Switch 2 gaming console, sending its shares up 2.9% in Tokyo trading.
Net profit at the Kyoto-based video game manufacturer rose to 147.4 billion yen ($933 million) for the April-June quarter, up from 96 billion yen during the same period last year. The earnings growth came despite a 9.5% decline in total quarterly sales, which fell to 517.8 billion yen ($3.3 billion).
The results highlight Nintendo’s expanding reliance on transmedia strategy to insulate earnings against hardware cycle fluctuations. “The Super Mario Galaxy Movie” generated 517.8 billion yen ($3.3 billion) in global box-office revenue, with international audiences accounting for the majority of sales. The cinematic success helped offset macroeconomic pressures, including trade tariffs under U.S. President Donald Trump and escalating component costs across the electronics sector.
In hardware, Nintendo shipped 3.82 million Switch 2 consoles globally during the quarter, continuing momentum for the device, which launched in June of last year. Demand for the original Switch hardware and software ecosystem also remained resilient, providing a steady baseline of secondary sales alongside the newer console platform.
Quarterly software volume for the Switch 2 reached 9.46 million units. Sales were led by the May debut of “Yoshi and the Mysterious Book” and ongoing interest in “Pokemon Pokopia,” which launched last year. To maintain engagement, Nintendo plans to lean on upcoming releases, having launched “Splatoon Raiders” last month and continuing development on “The Legend of Zelda: Ocarina of Time.”
Despite the strong quarter, Nintendo maintained a cautious full-year forecast as rising memory chip prices and broader supply-chain expenses squeeze operating margins. The company projects net profit for the fiscal year ending March 2027 to fall nearly 27% to 310 billion yen ($2 billion), on an 11% decline in full-year sales to 2.05 trillion yen ($13 billion).
Nintendo expects full-year Switch 2 hardware sales to drop nearly 17% to 16.5 million units, reflecting typical post-launch adoption patterns where console purchases taper following an initial release year. However, software sales are projected to grow 23% to 60 million units over the same period as the active installed base expands.
