Financial Performance and Pricing

Nintendo has ruled out further Switch 2 price rises while reporting falling console sales and reduced profit.

Operating profit fell 16% to 73.9 billion yen during the three months to September 30, following a 15% decline in sales. Nintendo sold 2.67 million Switch 2 units in the quarter, down 41% from the same period last year. The company previously raised the console's price in September, citing memory supply costs.

Despite these results, Nintendo President Shuntaro Furukawa stated the company has sufficient memory supply to meet its forecasted sales of 16.5 million units for the financial year ending March 2027 and is not considering further price adjustments.

Market Outlook and Software

The launch of the Ocarina of Time remake is expected to bolster holiday sales. However, investors remain concerned that ongoing memory supply constraints and a perceived lack of high-profile titles could impact the console's momentum.

During the first half of the current financial year, from April to September 2026, Nintendo sold 6.49 million Switch 2 units, compared to 10.36 million during the same period last year.

Lifetime sales of the Switch 2 have reached 26.35 million units, continuing to outpace the original Switch in launch-aligned sales. The console previously experienced a record-breaking launch, making year-over-year comparisons challenging.

Nintendo shares rose 8.13% following the release of the financial report and the Ocarina of Time remake.

Software Sales Performance

Recent software sales include 8.81 million units for Tomodachi Life: Living the Dream, 2.89 million for Rhythm Heaven Groove, and 2.42 million for Splatoon Raiders. Mario Kart World, a launch title, shifted an additional 1.78 million units.

StarFox and Fire Emblem: Fortune’s Weave sold 1.17 million and 1.34 million units respectively. Nintendo anticipates a stronger software lineup in 2027, with Pokémon Winds & Pokémon Waves already confirmed.

Industry analysts suggest that while the Ocarina of Time remake is a significant release, the company needs a more robust pipeline of blockbuster titles to maintain momentum given the current hardware price point.

Analysts emphasize that delivering major software hits in the next fiscal year is critical for sustained hardware sales.