Nintendo posted a sharp increase in sales for the first fiscal quarter ending June 30, fueled by the successful launch of the Nintendo Switch 2. Quarterly sales hit 572.363 billion yen, up 132% compared to the same period last year, when the company brought in 246.638 billion yen. Profit for the quarter came to 96.032 billion yen, a rise of 18.6% from 80.954 billion yen a year earlier. The gap between sales and profit growth comes down to the high cost of launching new hardware.
Nintendo Q1 Sales Surge 132%
Switch 2 sales drive revenue growth
The jump in quarterly revenue came mostly from strong early demand for the Nintendo Switch 2. Nintendo sold 5.82 million units in the early months after launch. In the seven weeks following the console's release, sell-through topped six million units, with supply issues cropping up in several markets due to high demand. The new hardware also helped grow the company's player base, which now stands at more than 128 million annual active users.
Nintendo Switch 2 software sales reached 8.67 million units for the quarter. The new console led hardware sales, but the original Nintendo Switch kept contributing too, with 0.98 million hardware units sold alongside 24.40 million units of software. Both platforms continue to see interest, with titles available across generations.
Nintendo Q1 Sales Surge 132%
Software performance and compatibility
Nintendo's software performance in the quarter was led by Mario Kart World, which launched the same day as the Switch 2 and sold 5.63 million units, including bundled copies. The new hardware's compatibility with previous Nintendo Switch titles helped push additional software sales, with games like Mario Kart 8 Deluxe and Super Mario Party Jamboree holding steady.
Nintendo has pointed to the availability of both new and legacy titles on the Switch 2 as a core part of its software sales strategy. Being able to play older games alongside new releases has kept interest up among returning and new users.
Nintendo Q1 Sales Surge 132%
Digital and IP business experience decline
Despite overall sales climbing, Nintendo saw a drop 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 came mainly from lower sales of downloadable versions of packaged software for the original Nintendo Switch.
Revenue from the company's IP-related business also fell, coming in at 16.7 billion yen, a decrease of 4.4% from the same period last year. The company pointed to reduced income from movie-related projects as the main reason.
Nintendo Q1 Sales Surge 132%
Upcoming releases to sustain momentum
After the July releases of Donkey Kong Bananza and Super Mario Party Jamboree – Nintendo Switch 2 Edition + Jamboree TV, Nintendo plans to roll out several more titles to keep software engagement going. In August, the company is set to release Drag x Drive and Kirby and the Forgotten Land – Nintendo Switch 2 Edition + Star-Crossed World. More releases are lined up 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 range of third-party titles to add to overall software sales in the coming months.
The company is looking to maintain software sales momentum by building on the early success of Mario Kart World and continuing to deliver a steady pipeline of new releases. Despite the strong start to the Switch 2 era, Nintendo hasn't changed 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 drop in sales and profit due to the transition between console generations. For the fiscal year ended March 31, Nintendo saw a 30.3% decrease in full-year sales, totaling 1.1649 trillion yen. Net profit also fell by 43.2%, landing at 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 waited for 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. The company has faced declines in digital and IP-related revenue, but the early results from its new hardware cycle have set it up for continued growth, assuming supply constraints can be managed and upcoming software releases keep meeting demand.
Here is a list of all the games mentioned in the article:
- Mario Kart World
- Mario Kart 8 Deluxe
- Super Mario Party Jamboree
- Donkey Kong Bananza
- Super Mario Party Jamboree – Nintendo Switch 2 Edition + Jamboree TV
- Drag x Drive
- Kirby and the Forgotten Land – Nintendo Switch 2 Edition + Star-Crossed World
- Pokémon Legends: Z-A – Nintendo Switch 2 Edition
