Nintendo Raises Switch 2 Sales Forecast to 19 Million Units After Strong Launch

TLDR

• Nintendo raised its Switch 2 sales forecast to 19 million units for the fiscal year ending March 2026, up from 15 million units previously
• The company has sold 10.3 million Switch 2 consoles since its June 2025 launch, exceeding expectations
• Nintendo increased its full-year operating profit forecast by 16% to 370 billion yen ($2.45 billion)
• Net profit for the quarter ending September 30 reached 102.9 billion yen, up 270% year-on-year
• The company asked manufacturing partners to produce up to 25 million Switch 2 units by March 2026

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Nintendo increased its sales forecast for the Switch 2 gaming console to 19 million units for the fiscal year ending March 2026. The Kyoto-based company previously projected 15 million units for the same period.

The revision comes after the Switch 2 sold 10.36 million units since its June 2025 launch. The hybrid home-portable gaming device went on sale during President Donald Trump’s trade war with other countries.

Nintendo reported revenue of 527.2 billion yen ($3.7 billion) for the quarter ending September 30. This exceeded market expectations of 461.76 billion yen.

Net profit reached 102.9 billion yen for the quarter. Analysts had forecasted 63.6 billion yen.

The company raised its full-year operating profit forecast by 16% to 370 billion yen. Nintendo also increased its net sales projection to 2.25 trillion yen from 1.9 trillion yen.

Revenue rose over 90% year-on-year in the recent quarter. Profit increased by more than 270% compared to the same period last year.

Manufacturing and Supply Chain

Nintendo asked its manufacturing partners to produce up to 25 million Switch 2 units by March 2026. The company faced widespread shortages during the console’s launch earlier this year.

More than 2.2 million customers in Japan competed for units during the initial release. The higher production target aims to meet sustained demand across markets.

The Switch 2 retails for about $450. Despite the higher price point, demand remained strong in Japan and the United States.

Games and Software Sales

Software sales reached 11.95 million units in the September quarter. Popular titles included “Mario Kart World” and “Donkey Kong Bonanza.”

The company’s operating profit ratio in the first half of the year was 13.2%. This compared to 23.2% in the same period a year earlier.

Nintendo released “Pokemon Legends: Z-A” to support demand heading into the holiday shopping season. “Kirby Air Riders” is scheduled for release during the year-end period.

President Shuntaro Furukawa described the first holiday shopping season as a key proving ground. The company maintains good momentum toward that period.

Nintendo increased advertising spending to 64.6 billion yen in the latest quarter. This represented an 80% increase compared to the previous year.

The Switch 2 features backward compatibility with original Switch games. The hybrid design allows players to use the device as both a home console and portable system.

Source: Google Finance

Nintendo’s shares have gained roughly 40% year-to-date. The stock closed down 0.8% ahead of the earnings release on Tuesday.

The company increased its dividend payout ratio to 60%. This reflects confidence in sustained revenue growth from the new console.

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