Nintendo's First-Half Profit Rises 11% but Falls Short of Analyst Forecasts

what happened

Nintendo reported that its net profit for the six months ended September climbed 11% from a year earlier to 220.92 billion yen, or $1.39 billion. That was below the 224.6 billion yen estimate from a Visible Alpha analyst poll. First-half revenue fell 12% to 966.04 billion yen, according to Dow Jones Newswires.

The company kept its forecasts for the fiscal year ending March 2027, including 16.5 million Switch 2 console sales, revenue down 11% to 2.050 trillion yen and net profit down 27% to 310 billion yen. In the first half it sold 6.49 million Switch 2 consoles, down from 10.36 million a year earlier, while Switch 2 software sales rose to 24.49 million copies from 20.62 million. Intellectual property income jumped 88% to 62.7 billion yen, helped by The Super Mario Galaxy Movie.

why it matters

Investors watch Nintendo as a bellwether for the gaming sector. Weaker hardware sales alongside growth in software and franchise income show the company leaning more on content than consoles. The recent rise in the Switch 2 price in the U.S., to about $500 from $450, is another factor to watch.

market impact

Nintendo shares and gaming sector: profit below forecasts, but annual outlook unchanged

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