Nintendo's Switch 2 sales fell 34.4 percent year-over-year to 3.82 million units in the latest quarter, though the company remains unconcerned. Total console sales have reached 23.68 million, outpacing the original Switch. A U.S. price hike from $450 to $500 takes effect September 1, 2026, which could pressure future sales.

Nintendo maintains its fiscal 2027 forecast of 16.5 million units after selling 19.86 million last year. Despite the hardware dip, revenue beat expectations driven by strong software sales and $300 million in Trump tariff refunds. Tomodachi Life: Living the Dream led with 7.96 million copies shipped in three months, alongside Pokémon Pokopia, Mario Kart World, and Donkey Kong Bonanza.

The company flagged a $633 million cost impact from rising memory prices and tariffs. On a brighter note, The Super Mario Galaxy Movie has grossed over $1 billion globally since its April release, becoming the second-highest-grossing game-based film ever.