Nintendo Sees Profit Surge Despite Decline in Switch 2 Sales

WHO:

ABC News Business - Nintendo, a Japanese game company

Techmeme - Jenny Lee, reporter for CNBC

WHAT:

theverge.com - Nintendo's operating profits soared to 142.5 billion yen (about $902 million) for the quarter, compared to 56.9 billion yen (about $360 million) for the same quarter last year, marking an increase of 150.5 percent.

theverge.com - Switch 2 software sales increased by 9.2 percent compared to the previous year, while software for the original Switch console increased by 38.6 percent.

theverge.com - Nintendo recorded “approximately $300 million as a reduction of cost of sales” due to US tariff refunds for this quarter.

ABC News Business - Nintendo's first-quarter profit surged 53.5%

ABC News Business - The profit increase was driven by the success of the Super Mario movie and strong demand for the Switch 2 console.

Techmeme - Nintendo reported Q1 revenue down 10% year-over-year to approximately $3.3 billion, exceeding the estimated $2.8 billion.

Techmeme - Nintendo's net income was approximately $933 million, above the estimated $495 million.

Techmeme - Switch 2 sales decreased by 34.4% year-over-year to 3.82 million units.

WHERE:

ABC News Business - Japan (implied as the location of Nintendo)

WHEN:

Techmeme - The financial results pertain to the first quarter of the fiscal year.

WHY:

ABC News Business - The profit surge was attributed to the popularity of the Super Mario movie and demand for the Switch 2.

HOW:

theverge.com - Nintendo stated it bore the costs associated with tariffs instead of passing them on to consumers through increased product prices.

ABC News Business - The increase in profit was linked to successful product releases and market demand.

(UPDATED August 7, 2026 00:50 UTC)

Nintendo's operating profits have surged to 142.5 billion yen, which is about $902 million, for the quarter, reflecting a remarkable increase of 150.5 percent compared to the same period last year. Software sales for the new Switch 2 rose by 9.2 percent, while sales for the original Switch console saw an even larger increase of 38.6 percent. Additionally, Nintendo reported a reduction of costs amounting to approximately $300 million due to US tariff refunds, as the company chose to absorb those costs rather than passing them on to consumers.

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(UPDATED August 6, 2026 18:35 UTC)

Nintendo's first-quarter profit skyrocketed by 53.5%, driven largely by the success of the Super Mario movie and strong demand for the Switch 2 console. Despite this profit surge, the company reported a 10% decline in revenue year-over-year, totaling approximately $3.3 billion, which surpassed expectations of $2.8 billion. Additionally, Nintendo's net income reached about $933 million, significantly above the estimated $495 million, although sales of the Switch 2 fell by 34.4% year-over-year to 3.82 million units.