Japanese video-game maker Nintendo has reported a 52% surge in annual profit, lifted by solid sales of its Switch 2 console and software, but announced a price hike and forecast lower profits for the coming fiscal year.
Annual Results
Nintendo's net profit for the fiscal year ended March 2026 reached 424 billion yen ($2.7 billion), up from nearly 279 billion yen the previous year. Annual sales nearly doubled, rising 99% to 2.3 trillion yen ($15 billion) from 1.2 trillion yen, as demand for the Switch 2 held up, although sales of the first-generation Switch declined.
Price Increases
The company announced it is raising the Switch 2 price in Japan to 59,980 yen ($382), effective May 25, from 49,980 yen ($318). In the United States, the price will increase to $499.99 in September, up from $449.99. Nintendo cited challenging market conditions, including U.S. President Donald Trump's tariff hikes and higher costs worsened by the war in Iran, though it did not provide further details.
Profit Forecast
Nintendo expects an 11% decline in profit for the fiscal year through March 2027, to 2.1 trillion yen ($13 billion), taking into account the planned price hikes. The company also forecasts selling 16.5 million Switch 2 machines in the next fiscal year, down nearly 17% from 19.86 million in the last fiscal year. However, Switch 2 software sales are expected to grow 23% to 60 million units, reflecting the typical pattern where hardware sales decline after launch while software continues to grow.
Strong Software and Film Performance
Among recent successful game software offerings were Mario Kart World and Donkey Kong Bananza. The game Tomodachi Life: Living the Dream has sold more than 3.8 million units since its release two weeks ago. Additionally, Nintendo's film The Super Mario Galaxy Movie has grossed more than $800 million since its release a month ago.
Future Software Titles
Nintendo promised more software titles for the Switch 2 this year, including from other creators, such as the latest Final Fantasy. The Switch is a hybrid game machine that functions both as a home console connected to a display and as a portable handheld.
Following the earnings announcement, Nintendo's stock price jumped 3.6%.
