Nintendo reports profit increase despite lower hardware sales
Nintendo recorded a 11% rise in net profit for the first half of the fiscal year, even as total revenue declined by 12% compared to the previous year.
Kyoto-based Nintendo reported a net profit of 220.9 billion yen ($1.4 billion) for the April-September period, up from 199 billion yen year-over-year. Despite the earnings growth, the company saw sales drop to 966 billion yen, driven by fluctuating demand for its aging Switch console hardware.
Hardware performance remains a focal point as the company transitions its product lifecycle. During this six-month window, Nintendo moved 1.27 million Switch units and 6.49 million of its newer console variants. Revenue was supported by steady software sales, particularly for titles like "Star Fox" and "Splatoon Raiders," alongside ongoing contributions from digital downloads and ancillary revenue from the "Super Mario Galaxy" film adaptation.
Nintendo maintained its full-year guidance, projecting a 310 billion yen profit on 2 trillion yen in revenue through March 2027. The company continues to navigate broader industry challenges, including rising production costs for computer chips attributed to global artificial intelligence hardware demand. Following the report, Nintendo shares closed 6.3% higher on the Tokyo Stock Exchange.