TOKYO — Gaming powerhouse Nintendo reported a remarkable 52% jump in annual profits during its most recent fiscal year, driven by strong performance of Switch 2 console sales and game titles.
The Kyoto-based entertainment company, known for creating beloved franchises like Super Mario and Pokemon, revealed plans to increase console pricing due to difficult market circumstances.
Nintendo’s net earnings reached 424 billion yen ($2.7 billion) for the fiscal period ending in March, representing a substantial increase from the previous year’s 279 billion yen.
The company saw annual revenue double, climbing 99% to reach 2.3 trillion yen ($15 billion) compared to 1.2 trillion yen in the prior year. This growth occurred as Switch 2 demand remained strong, even while original Switch sales showed signs of weakening.
Starting May 25, Nintendo will implement a Switch 2 price increase in Japan, raising the cost to 59,980 yen ($382) from the current 49,980 yen ($318). The company stated this decision came “in light of changes in market conditions, and after considering the global business outlook.”
American consumers will face a September price adjustment, with the Switch 2 cost rising to $499.99 from $449.99.
While Nintendo didn’t elaborate on specific reasons, Japanese exporters across industries are grappling with President Trump’s tariff policies and additional expenses amplified by ongoing conflict in Iran.
Looking ahead, Nintendo Co. anticipates an 11% drop in profits for the fiscal year ending March 2027, projecting 2.1 trillion yen ($13 billion). This forecast incorporates the upcoming price adjustments.
Bright spots include Nintendo’s cinematic venture “The Super Mario Galaxy Movie,” which has earned over $800 million in box office revenue since debuting one month ago.
Recent gaming successes include popular software releases “Mario Kart World” and “Donkey Kong Bananza.”
The title “Tomodachi Life: Living the Dream” has achieved sales exceeding 3.8 million copies in just two weeks since launch.
For the upcoming fiscal year through March 2027, Nintendo projects Switch 2 hardware sales of 16.5 million units, representing a nearly 17% decrease from the previous year’s 19.86 million. However, the company expects Switch 2 software sales to continue expanding, targeting 60 million units — a 23% increase from 48.7 million.
Industry patterns typically show gaming consoles experiencing initial strong sales followed by gradual decline, while software sales tend to maintain growth momentum. The Switch operates as a versatile gaming system, serving both as a traditional home console and portable handheld device.
Nintendo has committed to expanding Switch 2 software offerings this year, including partnerships with external developers for titles such as the newest “Final Fantasy” installment.
Following the earnings announcement, Nintendo’s stock value increased by 3.6%.
