Nintendo Doubles Quarterly Revenues as Sales of Switch 2 Jump to 5.8 Million Units
Nintendo started its fiscal year on a big high. In its latest quarterly report, the gaming giant reported that it more than doubled revenue, thanks in large part to the blockbuster launch of the Switch 2 console, which has already sold 5.82 million units since June 5, 2025.
This staggering number captures the pent-up demand for the eagerly anticipated follow-up to the inaugural Switch, which turned out to be one of the highest-selling consoles in history. Enthusiasts queued up in cities across the globe—from Tokyo to Manhattan—desperate to lay their hands on the new hybrid console, and it is one of the largest global gadget launches since the early iPhone debuts.
Staggering Growth Numbers
Nintendo generated 572.3 billion yen ($3.8 billion) in revenue during the quarter ended June 30, a 132% year-over-year increase and well above an analyst forecast of 474.84 billion yen. Operating profit was 56.9 billion yen, better than the estimated 53.46 billion yen.
The largest growth driver was Nintendo's committed video game platform business, where sales increased 142.5% year-on-year to 555.5 billion yen. The Switch 2 being more expensive than the previous model was a factor in this growth.
Yet, not all segments performed well. Nintendo's intellectual property business, which encompasses box office from movies such as The Super Mario Bros. Movie, saw sales fall by 4.4%, due to a decrease in movie sales.
Conservative Yet Confident Forecasts
In spite of the staggering quarter, Nintendo did not revise its full-year financial target. The company still maintains 1.9 trillion yen in revenue and 320 billion yen in operating profit for the fiscal year through March 2026.
The Switch 2 sales target is also unmoved at 15 million units, which some estimate is conservative. Given the Switch 2 moved 3.5 million units in just four days alone, most industry experts expect Nintendo to surpass this estimate.
Nintendo stock has risen 40% so far this year, a strong indication of investor faith in the direction of the company, particularly with the Switch 2 injecting fresh energy into its product portfolio.
Navigating U.S. Tariffs With Strategy
Among the issues looming large is the effect of new U.S. tariffs on imports that could arguably nibble into profits. Yet even analysts such as Morningstar's Kazunori Ito are of the opinion that Nintendo will navigate the challenge successfully.
"Though Nintendo profitability will deteriorate in the short term on a higher tariff rate, the company will recoup the loss in the longer term by selling more games to more users," Ito stated.
Nintendo reiterated this in its official release, stating that while market conditions have changed, including tariff issues, "there is no material impact on our earnings forecast for this fiscal year."
Frequently Asked Questions (FAQs)
What is the Nintendo Switch 2, and how does it differ from the original Switch?
The Nintendo Switch 2 is the new hybrid gaming console by Nintendo, released in June 2025. It has improved graphics, a faster processor, increased battery life, and improved online features over the original Switch released in 2017.
How many Switch 2 units have been sold until now?
Through the end of June 2025, Nintendo has sold 5.82 million units of Switch 2, including 3.5 million in only the first four days following its release.
Why are analysts saying Nintendo's projection is conservative?
Even with a huge initial response, Nintendo still had set a goal of 15 million units for the fiscal year. Based on the sales clip so far, many analysts feel the company will easily exceed that figure.
How does Nintendo's business get affected by U.S. tariffs?
New U.S. tariffs may impact the Switch hardware profit margin, but Nintendo will presumably offset the effect through higher software sales and an expanding user base. The company has not adjusted its projection because of these tariffs.
Are there going to be more Switch 2-specific games or content?
Indeed, Nintendo should unveil a robust slate of exclusive games and remastered versions of top franchises on the Switch 2, adding to hardware and software sales throughout the year.
With the Switch 2 off to a scorching start and a firm strategic foundation established, Nintendo appears set to carry momentum through the remainder of the fiscal year—and potentially beyond.