Nintendo Switch 2 quarterly sales fall 41% as component costs weigh

Nintendo’s Switch 2 console sales fell 41.2% year-on-year in the July-September quarter, the Japanese gaming company’s financial results showed Thursday, as it faces rising component costs.

The company sold 2.67 million Switch 2 consoles in its fiscal second quarter, down from 4.54 million a year earlier and 3.82 million in the preceding three months, according to its financial results presentation.

The figures, which measure sales into distribution channels, represented a quarterly decline of 30.1%.

Switch 2 hardware sales totaled 6.49 million units in the six months through September, down 37.4% from a year earlier. Sales of the original Switch fell 32.7% to 1.27 million units over the same period.

Despite weaker hardware sales, Nintendo’s operating profit rose 49.1% to 216.5 billion yen ($1.37 billion) in the first half of its fiscal year.

The company attributed the increase to steady software sales, which accounted for a larger share of revenue, and a first-quarter refund of US tariffs previously recorded as costs.

Revenue declined 12.1% to about $6.12 billion, while net profit increased 11% to roughly $1.4 billion.

Switch 2 software sales rose 18.8% to 24.49 million units during the six-month period, while software sales for the original Switch increased 6.8% to 65.73 million.

Nintendo said new releases helped support adoption of the Switch 2 despite the year-on-year hardware sales decline.

Rising memory costs

Nintendo maintained its full-year financial forecasts and its target of selling 16.5 million Switch 2 consoles in the fiscal year ending March 2027.

Its forecast incorporates approximately $633 million in costs associated with rising component prices, particularly memory, and tariff measures.

The company continues to forecast annual revenue of approximately $12.98 billion, operating profit of $2.34 billion and net profit of $1.96 billion.

Nintendo said it plans to expand the Switch 2’s installed base through sales of existing games and the continued introduction of new titles, while drawing on the original Switch’s large user base to sustain software sales and engagement.