Japan's Nintendo keeps profit outlook, Switch 2 sales forecast

Japan’s Nintendo on Tuesday left its annual operating profit forecast unchanged at 370 billion yen ($2.4 billion), representing an increase of nearly one-third compared with the previous financial year.

The maker of the “Super Mario” franchise launched its Switch 2 gaming console in mid-2025 and saw strong early sales, though investors continue to question whether that initial momentum can be sustained over the longer term, News.Az reports, citing Reuters.

The Kyoto-based company also maintained its annual sales forecast for the Switch 2 at 19 million units. The new console succeeds the hugely popular original Switch, which became one of the best-selling gaming devices of all time.

Nintendo has had to navigate supply-chain disruptions linked to the trade war pursued by U.S. President Donald Trump, while hardware manufacturers more broadly are facing sharply rising memory-chip prices driven by booming investment in artificial intelligence.

Despite these challenges, analysts say Nintendo is relatively well positioned. In a note to clients ahead of the earnings release, Jefferies analyst Atul Goyal said the company’s “sizable inventories and long-term contracts will shield it for several quarters,” giving it an advantage over some competitors.

The Switch 2 is priced at $449.99 in the United States, significantly higher than the Japanese-language version sold domestically for 49,980 yen ($320). The higher U.S. price is widely viewed as reflecting the current inflationary environment.

“It would be harder for Nintendo to raise prices than Sony, as the Switch 2 is not a high-end product,” said Serkan Toto, founder of the Kantan Games consultancy.

Goldman Sachs analyst Minami Munakata also noted that Nintendo has a long-standing policy of not selling hardware at a loss, adding that “concerns about the Nintendo Switch 2 becoming unprofitable are overdone.”

Some investors remain cautious about the company’s release schedule, citing the absence of major blockbuster titles such as new entries in “The Legend of Zelda” series, which helped drive sales of the original Switch. Upcoming releases include “Mario Tennis Fever,” which is set to launch next week.

News.Az 

By Nijat Babayev