Nintendo's Switch 2 sales slump 41% in July-September quarter
Nintendo kept its full-year forecasts despite a sharp drop in console sales, citing rising memory costs and tariffs.
Sales of Nintendo's Switch 2 console fell 41.2% from a year earlier in the July-September quarter, the Japanese gaming company's results showed on Thursday, as costs for key components climbed, Turkey's state-run news agency Anadolu Agency reported.
Nintendo shipped 2.67 million Switch 2 units in its fiscal second quarter, compared with 4.54 million a year earlier and 3.82 million in the previous three months, according to its results presentation.
The company said those figures, which track sales into distribution channels, marked a 30.1% drop from the prior quarter.
For the six months through September, Switch 2 hardware sales reached 6.49 million units, 37.4% lower than a year earlier, while sales of the original Switch dropped 32.7% to 1.27 million units.
Nintendo's operating profit still climbed 49.1% to 216.5 billion yen, or $1.37 billion, in the first half of its fiscal year.
The company credited steady software sales, which made up a bigger share of revenue, along with a first-quarter refund of US tariffs that had previously been booked as costs.
Revenue fell 12.1% to about $6.12 billion, while net profit rose 11% to roughly $1.4 billion.
Software sales were stronger.
Switch 2 game sales rose 18.8% to 24.49 million units over the six months, and original Switch game sales grew 6.8% to 65.73 million.
Nintendo said new releases had helped drive Switch 2 adoption despite lower hardware sales.
The company kept its full-year forecasts and its goal of selling 16.5 million Switch 2 consoles in the year ending March 2027.
That outlook includes about $633 million in expected costs from rising component prices, particularly memory, and tariff measures.
Nintendo still expects annual revenue of about $12.98 billion, operating profit of $2.34 billion and net profit of $1.96 billion.
The company plans to grow the Switch 2's installed base through existing game sales and new titles, while relying on the large user base of the original Switch to keep software sales and engagement up.
