Nintendo reported that it sold 2.67 million Switch 2 units in the three months ended September 30, a 41% year-on-year decline.
The Japanese gaming giant was forced to raise the price of the Switch 2 due to rising memory chip costs, and investors are pinning their hopes on a remake of the classic title The Legend of Zelda: Ocarina of Time to boost console sales in the coming weeks.
On June 2, 2025, a Super Mario character was displayed in a showcase at an electronics store in Nagoya, Japan, on the eve of the Nintendo Switch 2 launch.
After the Japanese gaming giant raised product prices amid surging memory chip costs, sales of its flagship Switch 2 console fell sharply in the second quarter of the fiscal year.
Nintendo Co., Ltd. (NTDOY) announced that it sold 2.67 million Switch 2 units in the three months ended September 30, down 41% from a year earlier and below the 3.82 million units sold in the previous quarter.
In the quarter, the company implemented price increases in the United States, Canada, and Japan, following an earlier console price hike in Japan this year.
Memory is a core component of Nintendo's gaming consoles, and the chip is currently facing persistent supply shortages and strong demand, with prices surging at an unprecedented pace.
Even so, the Japanese gaming giant maintained its sales target of 16.5 million units for the fiscal year, which ends in March 2027.
The following is a comparison of Nintendo's actual second-quarter results with the LSEG market consensus estimate:
Revenue: 448.2 billion yen (about $2.8 billion), versus an expected 481.37 billion yen.
Net profit: 73.5 billion yen, versus an expected 82.16 billion yen.
Investors Focus on Future Game Releases
The Kyoto-based game maker released several decent performers this year, including Tomodachi Life: Dream Life and the surprise hit Pokopia, but it lacks a major flagship title.
Investors are placing their hopes on the remake of the classic IP The Legend of Zelda: Ocarina of Time, hoping it can lift Switch 2 console sales in the coming weeks.
The game was officially launched on Thursday.
Serkan Toto, CEO of Kantan Games, said in an interview: "The only real blockbuster Nintendo has this fiscal year is the Ocarina of Time remake. But that alone will hardly satisfy investors, especially now that the console itself is already priced very high."
"Selling gaming hardware is becoming increasingly difficult now; only phenomenal hits can drive sales. Nintendo must accelerate its efforts in the next fiscal year and release more major games to sustain the Switch 2's growth momentum."
Nintendo also plans to launch a new Pok茅mon series game in 2027.
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