Nintendo's latest earnings show a sharp drop in hardware shipments for the fiscal second quarter, which the company defines as the period from July to September. The Nintendo Switch 2 shipped 2.67 million units, down 41% from 4.54 million a year earlier and 30% from the April-June quarter. The original Switch shipped 610,000 units, down 33% year-on-year.
Nintendo is leaning on software to offset weaker console sales. Switch 2 software sales rose 26% to 15.03 million units, led by Splatoon Raiders with 2.42 million sales and Fire Emblem: Fortune's Weave with 1.34 million. Original Switch software reached 31.92 million units, helped by Rhythm Heaven Groove, which sold 2.89 million units. Digital sales grew 37% year-on-year to approximately $734 million (116.9 billion yen), making up 59.8% of software sales.
Overall quarterly revenue was about $2.81 billion (448.2 billion yen), and net profit fell 29% to approximately $461 million (73.5 billion yen). Both figures came in below analyst expectations. Nintendo kept its full-year forecast of 16.5 million Switch 2 units and about $1.95 billion (310 billion yen) in net profit.
The hardware decline is attributed to supply chain problems. Sourcing memory and storage has been difficult, and Nintendo has raised console prices several times in the past. With memory supply still constrained, further price increases may not be ruled out. For now, strong software sales are keeping the company profitable despite the hardware challenges.
Source: TechPowerUp News · Summarized by HeadlinesBriefing