Nintendo’s Switch 2 sales dropped hard this quarter. The company sold 3.82 million units—down 34.4 percent from last year’s same period. Meanwhile, the original Switch also saw a 31.8 percent decline to just 660,000 units.
The sales slump didn’t crush Nintendo’s finances. The company posted 147.4 billion yen in net profit for the fiscal first quarter ending June 30, 2026. That’s a 53.5 percent jump over expectations, which pegged profit at 78.3 billion yen. Revenue rose to 517.8 billion yen, beating the forecast of 444.96 billion yen.
Despite fewer consoles selling, Nintendo’s overall Switch 2 install base reached 23.68 million units, outpacing the original model’s lifetime sales. Last year, Switch 2 sales were 19.86 million units. Nintendo attributes this to steady software releases and other market factors. “Although Switch 2 sales volume declined… many consumers continued to adopt the system, encouraged by the release of new titles and other factors,” the company said.
Game sales remain a bright spot. Switch 2 shipped 7.96 million copies of Tomodachi Life: Living the Dream within three months and 1.27 million copies of Pokémon Pokopia outside Japan. Nintendo insists “releasing new titles at regular intervals is crucial to expanding the Switch 2’s installed base.”
The Switch 2’s hardware costs are rising. Memory chip prices surged, squeezing margins. Nintendo will raise the Switch 2’s US price from $450 to $500 on September 1, 2026, following a similar hike in Japan on May 25. This could dampen future sales.
Meanwhile, Nintendo’s Super Mario Galaxy Movie is a blockbuster. Since its April 1 release, it grossed over $1 billion worldwide. It’s now the second highest-grossing game-based film, behind only the first Mario movie. This success bolsters Nintendo’s brand and revenue streams beyond hardware.
Looking ahead, Nintendo forecasts 2.05 trillion yen in net sales and 310 billion yen in profit for the full fiscal year ending March 2, 2027. The company plans to keep pushing new game releases and expand the Switch 2’s audience. Minecraft arrives on Switch 2 in October, possibly boosting sales.
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