Nintendo's Q1 profit spikes on Switch 2 demand and Super Mario movie success

Nintendo announced a first-quarter profit of 147.4 billion yen, a 53.5% increase over the same period last year, thanks to the popularity of its Switch 2 console and earnings from the Super Mario Galaxy movie. Quarterly revenue slipped 9.5% to 517.8 billion yen, while the company sold 3.82 million Switch 2 units globally and recorded software sales of 9.46 million copies, led by titles like “Yoshi and the Mysterious Book” and “Pokemon Pokopia.”

The firm cited U.S. tariffs and rising memory-chip prices as headwinds and projected full-year profit of about 310 billion yen, roughly 27% lower than the prior fiscal year, with overall sales expected to decline 11%. Nintendo expects to sell 16.5 million Switch 2 consoles this fiscal year, down nearly 17% from the previous year, but forecasts software sales to rise 23% to 60 million units. The earnings announcement lifted Nintendo’s Tokyo-listed shares by 2.9%.