Nintendo reported a 52% surge in annual profit for the fiscal year ending March, reaching 424 billion yen ($2.7 billion), up from nearly 279 billion yen the previous year, driven by strong sales of its Switch 2 hardware and software [1]. Annual sales nearly doubled, rising 99% to 2.3 trillion yen ($15 billion) from 1.2 trillion yen, as demand for Switch 2 remained robust, although first-generation Switch sales declined [1].
In response to challenging business conditions, Nintendo announced price increases for the Switch 2. In Japan, the price will rise to 59,980 yen effective May 25, up from 49,980 yen, while in the U.S., the price will increase to $499.99 in September from $449.99 [1]. The company cited changes in market conditions and the global business outlook as reasons for the hikes, noting that Japanese exporters are facing higher costs due to U.S. President Donald Trump’s tariff hikes and the war in Iran [1].
Looking ahead, Nintendo forecasts an 11% decline in profit for the fiscal year through March 2027, projecting 2.1 trillion yen ($13 billion), with the outlook factoring in the planned price increases [1]. The company expects to sell 16.5 million Switch 2 units in the coming fiscal year, down nearly 17% from 19.86 million sold in the last fiscal year, but anticipates Switch 2 software sales to grow 23% to 60 million units from 48.7 million [1].
Nintendo also highlighted the success of its film, “The Super Mario Galaxy Movie,” which has grossed over $800 million since its release a month ago, and strong game software sales, including “Mario Kart World,” “Donkey Kong Bananza,” and “Tomodachi Life: Living the Dream,” which sold more than 3.8 million units in two weeks [1]. The company promised more software titles for Switch 2 this year, including the latest “Final Fantasy” [1]. Following the earnings announcement, Nintendo’s stock price jumped 3.6% [1].
CONCLUSION
Nintendo’s strong profit and sales growth were accompanied by price hikes for the Switch 2, reflecting challenging market conditions. Despite forecasting lower profits and hardware sales for the coming year, the company expects continued growth in software sales and has seen positive market reaction, as evidenced by a 3.6% rise in its stock price.