Japanese company Nintendo on Tuesday reported a 23% increase in quarterly profit thanks to strong sales of the Switch 2 console and said that a sharp rise in memory chip prices has no significant impact on financial results in the current fiscal year. This was reported by Reuters, writes UNN.
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The company also maintained its annual forecasts for profits and hardware sales, including expectations that Switch 2 sales will reach 19 million units.
In the nine months to the end of December, including the key holiday shopping period, Nintendo sold 17.4 million hybrid gaming consoles.
Despite the lack of exclusive blockbusters, the Switch 2 sold very well during the holidays
The Kyoto-based company launched the Switch 2, the successor to the hugely popular Switch console, in mid-2025. Investors had previously doubted whether high initial demand could be sustained.
Electronics manufacturers are currently facing a sharp increase in memory chip prices amid active investments in artificial intelligence. According to Nintendo President Shuntaro Furukawa, this price increase has not yet had a significant impact on the company's results, but if it continues for a long time, it could put pressure on profitability.
Jefferies analyst Atul Goyal noted that significant inventories and long-term contracts will allow Nintendo to more easily weather price increases for several quarters.
In the reporting quarter, the company's operating profit amounted to 155 billion yen (995 million dollars), and at the end of the fiscal year, it is expected to be 370 billion yen, which is almost a third more than a year earlier.
In the US, the Switch 2 console sells for $449.99, which is significantly more expensive than the Japanese version, which costs 49,980 yen (about $320). The higher price in the American market is associated with current inflationary conditions.
Nintendo shares have fallen by almost a third from their recent high recorded in November.
Goldman Sachs analyst Minami Munakata noted that Nintendo adheres to a policy of not selling hardware at a loss, and considers fears about possible losses from Switch 2 sales to be exaggerated.
Investors are also concerned about the lack of high-profile releases, including new games from The Legend of Zelda series, which previously stimulated Switch sales.
Among the company's upcoming releases is the game Mario Tennis Fever, which is scheduled for release next week.
Nintendo Switch 2 faces issues with the launch of two popular games26.08.25, 18:04 • [views_3390]