Nintendo reported that operating profit surged 150% in the April‑June quarter, climbing from JPY 56.9 billion to JPY 142.5 billion, despite a 9.5% drop in net sales to JPY 517.8 billion.

The boost came largely from a $300 million tariff refund in the United States, which the company absorbed rather than passing costs to consumers. A recent price hike on the Switch 2, driven by higher component costs, also helped lift margins. These factors combined to offset the decline in hardware volume and keep profitability high.

Hardware sales dropped sharply, with 3.82 million Switch 2 units sold (down 34.4%) and only 0.66 million original Switch models (down 31.8%). However, game sales rose, totaling 9.46 million titles, a 9.2% increase, led by strong performance of Switch 2 titles and a 38.6% jump in original Switch game units to 33.81 million. Retail sales of physical games remained robust, supporting the overall increase in software revenue.

Digital revenue surged 90% to JPY 132.7 billion, while IP‑related earnings jumped 107% to JPY 34.8 billion, boosted by the success of The Super Mario Galaxy Movie. Overall, the quarter shows Nintendo’s ability to grow profit despite weaker console shipments.