Nintendo Q1 profit surges 19% on strong Switch 2 sales, production boosted.

Nintendo's net profit jumped 19% in Q1, topping market expectations, driven by strong sales of its new Switch 2 console. The company sold over 6 million units globally in the seven weeks since its June 5 launch, boosting production due to demand. Revenue more than doubled to $3.8 billion, and the company maintained its full-year forecasts, expecting revenue to climb 63% to $1.9 trillion and net profit to rise 7.6% to $300 million.

Nintendo has reported its financial results for the first quarter of its fiscal year, ending June 2025, with a significant increase in net profit, primarily driven by the strong sales of its new Switch 2 console. The company sold over 6 million units globally in the seven weeks since its June 5 launch, exceeding expectations and prompting an increase in production to meet demand.

Revenue for the quarter jumped to 3.8 billion yen, more than doubling from the previous year. This surge was largely attributable to the Switch 2's rapid adoption and the success of its software titles, such as Mario Kart World, which sold 5.63 million units. The Switch 2 hardware sales reached 5.82 million units, while the Switch 1 hardware sales totaled 0.98 million units.

Digital sales for Nintendo's dedicated video game platforms decreased by 13.5% year-on-year, primarily due to a decline in downloadable software sales for the Switch. However, the company maintained its full-year forecasts, expecting revenue to climb by 63% to 1.9 trillion yen and net profit to rise by 7.6% to 300 billion yen.

Nintendo plans to continue invigorating the Switch 2 platform by introducing new titles and expanding its user base. Upcoming releases include Donkey Kong Bananza, Super Mario Party Jamboree, Drag x Drive, Kirby and the Forgotten Land, and Pokémon Legends: Z-A. The company aims to maximize software sales by leveraging the momentum of Mario Kart World and continuously introducing new titles.

Overall, Nintendo's Q1 results demonstrate a strong start to the fiscal year, driven by the success of the Switch 2 and its software titles. The company's ability to maintain its full-year forecasts despite a challenging market environment is a testament to its resilience and strategic planning.

References:
[1] Nintendo Financial Results, August 2025 (https://nintendoeverything.com/nintendo-financial-results-august-2025-switch-2-at-5-82-million-units-switch-at-153-10-million-more/)