Nintendo's fiscal first-quarter profit and revenue beat estimates, despite Switch 2 sales slump
📰 source: cnbc_topnews · 💼 business
nintendo's fiscal first-quarter profit and revenue beat analyst estimates, even as switch 2 sales slumped. revenue came in at 517.8 billion yen ($3.28 billion) versus 444.96 billion yen expected. net profit hit 147.4 billion yen versus 78.30 billion yen expected. shares closed 2.87% higher ahead of the earnings release.
the company kept its yearly forecast unchanged, with net sales still seen at 2.05 trillion yen. switch 2 hardware sales fell 34.4% year over year to 3.82 million units, while original switch sales dropped 31.8% to 0.66 million. nintendo said consumers kept adopting the switch 2, helped by new titles. it also factored a nearly 100 billion yen hit from higher component prices, especially memory, and tariffs. memory chip prices have surged on ai demand.
game sales were driven by tomodachi life: living the dream at 7.94 million units and pokémon pokopia at 1.27 million. in japan, where switch 2 prices rose on may 25, hardware sell-through stayed solid. nintendo also announced a $50 u.s. price hike to $499.99, effective sept. 1. the super mario galaxy movie has crossed $1 billion globally, becoming the second-highest-grossing video game film ever.
why it matters: nintendo beats profit estimates despite switch 2 sales slump, showing software and movie strength can offset hardware weakness.
source: cnbc_topnews
sentiment: +0.30 · impact: 0.50