Nintendo reports profit growth despite decline in sales
Company's profit climbs despite a 12.1% drop in net sales, driven by software and IP revenue.
(Photo via Fast Company)
Nintendo Co. reported an 11% increase in net profit for the first half of the fiscal year ending Sept. 30, 2026, reaching 220.9 billion yen, or approximately $1.4 billion. Despite the rise in profit, the Kyoto-based company saw its net sales fall by 12.1% to 966 billion yen, roughly $6.1 billion, during the same period.
The company's operating profit rose significantly by 49.1% to 216.5 billion yen. This financial performance was supported by a shift toward software sales, increased revenue from intellectual property, and a one-time refund of U.S. tariffs under the International Emergency Economic Powers Act.
Hardware sales experienced a decline as demand for the Switch 2 cooled following its 2025 launch and a price increase implemented in September 2026.
Looking ahead, Nintendo maintained its full-year net profit forecast of 310 billion yen. President Shuntaro Furukawa stated that the company is not currently considering further price increases for the Switch 2, as it looks to the holiday season to drive consumer engagement and software sales.