Nintendo's second-quarter revenue and net profit missed analyst estimates as Switch 2 sales fell 41% year over year, while the company kept its annual target at 16.5 million Switch 2 units.
Nintendo said it sold 2.67 million Switch 2 consoles in the quarter ended Sept. 30. The total was 41% below the same quarter a year earlier and lower than the 3.82 million units recorded in the preceding quarter. Nintendo kept its target of 16.5 million Switch 2 units for the fiscal year, which ends in March 2027.
Nintendo raised Switch 2 prices in Japan on May 25 and in the United States and Canada on Sept. 1. CNBC linked the moves to constrained memory-chip supplies and strong demand, which it said have raised component costs. Memory chips are a key part of Nintendo's consoles.
Nintendo reported revenue of 448.2 billion yen ($2.8 billion) and net profit of 73.5 billion yen. CNBC said the figures were below LSEG average estimates: 481.37 billion yen for revenue and 82.16 billion yen for net profit.
Nintendo released The Legend of Zelda: Ocarina of Time remake Thursday, Nov. 5. CNBC reported that investors hope the title will lift sales in the coming weeks. Serkan Toto, CEO of Kantan Games, told CNBC the current lineup may not satisfy investors and called for more high-profile games next fiscal year. He said hit games are increasingly important as selling console hardware becomes harder.
CNBC named Tomodachi Life: Living the Dream and Pokémon Pokopia among Nintendo's successful releases this year, describing the latter as a surprise viral hit. Nintendo's schedule also includes more Pokémon games in 2027, the outlet reported.
