Nintendo Q1 Sales Surge 132%

Nintendo reported a sharp increase in sales for the first fiscal quarter ending June 30, supported by the successful launch of the Nintendo Switch 2. Quarterly sales reached 572.363 billion yen, an increase of 132% compared to the same period last year, when the company recorded 246.638 billion yen in sales. Profit for the quarter totaled 96.032 billion yen, up 18.6% from 80.954 billion yen a year earlier. The difference between sales and profit growth reflects the high cost associated with launching new hardware.

Switch 2 Sales Drive Revenue Growth

The increase in quarterly revenue was largely driven by strong initial demand for the Nintendo Switch 2. Nintendo reported that 5.82 million units were sold in the early months following launch. In the seven weeks after the console’s release, sell-through exceeded six million units, with supply challenges emerging in several markets due to high demand. The momentum from the new hardware also contributed to growth in the company’s player base, which has now surpassed 128 million annual active users.

Nintendo Switch 2 software sales reached 8.67 million units for the quarter. While the new console led hardware sales, the original Nintendo Switch also continued to contribute, with 0.98 million hardware units sold alongside 24.40 million units of software. This performance reflects continued interest in both hardware platforms and the availability of titles across generations.

Nintendo Q1 Sales Surge 132%

Software Performance and Compatibility

Nintendo’s software performance in the quarter was led by the release of Mario Kart World, which launched on the same day as the Switch 2 and sold 5.63 million units, including those bundled with the console. The new hardware’s compatibility with previous Nintendo Switch titles supported additional software sales, as games such as Mario Kart 8 Deluxe and Super Mario Party Jamboree maintained strong demand.

Nintendo has indicated that the availability of both new and legacy titles on the Switch 2 platform is a key component of its software sales strategy. The ability to access older games alongside new releases has helped maintain interest among returning and new users.

Nintendo Q1 Sales Surge 132%

Digital and IP Business Experience Decline

While overall sales increased, Nintendo reported a decline in digital revenue for the quarter. Digital sales for dedicated video game platforms totaled 69.8 billion yen, down 13.5% year-on-year. The decline was mainly attributed to lower sales of downloadable versions of packaged software for the original Nintendo Switch.

Revenue from the company’s IP-related business also declined, totaling 16.7 billion yen, a decrease of 4.4% from the same period last year. The company cited reduced income from movie-related projects as the primary reason for this decline.

Nintendo Q1 Sales Surge 132%

Upcoming Releases to Sustain Momentum

Following the releases of Donkey Kong Bananza and Super Mario Party Jamboree – Nintendo Switch 2 Edition + Jamboree TV in July, Nintendo plans to introduce several more titles to support software engagement. In August, the company is scheduled to release Drag x Drive and Kirby and the Forgotten Land – Nintendo Switch 2 Edition + Star-Crossed World. Additional releases are planned for October, including Pokémon Legends: Z-A – Nintendo Switch 2 Edition, which will be available as part of a hardware bundle. Nintendo also expects a variety of third-party titles to contribute to overall software sales in the coming months.

The company aims to maintain software sales momentum by leveraging the early success of Mario Kart World and continuing to offer a steady pipeline of new releases. Despite the strong start to the Switch 2 era, Nintendo has not made changes to its earlier financial forecast issued in May.

Nintendo Q1 Sales Surge 132%

Previous Year Impacted by Console Transition

The company's previous financial year was marked by a decline in sales and profit due to the transition between console generations. For the fiscal year ended March 31, Nintendo reported a 30.3% decrease in full-year sales, totaling 1.1649 trillion yen. Net profit also declined by 43.2%, reaching 278.8 billion yen, down from 490.6 billion yen the year before. The decline reflected a slowdown in demand for the original Nintendo Switch as consumers anticipated the launch of the new console.

Final Thoughts

Nintendo’s strong performance in the first quarter of the new fiscal year reflects a successful launch for the Switch 2 and sustained interest in its games. Although the company has faced declines in digital and IP-related revenue, the early results from its new hardware cycle have positioned it for continued growth, provided supply constraints can be managed and upcoming software releases continue to meet demand.

Here is a list of all the games mentioned in the article: