Nintendo reported a 52% increase in its annual profit for the last fiscal year, driven by robust sales of its Switch 2 console and its games, as stated on Friday.
The well-known Japanese video game company, famous for creating franchises like Super Mario and Pokémon, announced a price hike, attributing it to challenging market conditions.
For the fiscal year ending in March, net profit reached 424 billion yen (approximately $2.7 billion), compared to about 279 billion yen the previous year.
Sales surged by 99%, hitting 2.3 trillion yen ($15 billion) compared to 1.2 trillion yen in the same timeframe last year, largely due to the strong demand for Switch 2, even as first-generation Switch sales dipped.
Nintendo plans to raise the Switch 2 price in Japan from 49,980 yen ($318) to 59,980 yen ($382) effective May 25, citing “changing market conditions and the global business outlook.”
In the US, the price will jump from $449.99 to $499.99 in September.
The Kyoto-based company didn’t delve into specifics, but many of Japan’s major exporters face challenges, including tariff increases and additional costs linked to the ongoing Iran conflict.
Though Nintendo hasn’t provided a detailed breakdown of its quarterly results, it projects a sales decline of 11% to 2.1 trillion yen ($13 billion) for the fiscal year ending March 2027, considering the planned price hikes.
On a positive note, the Super Mario Galaxy Movie has already grossed over $800 million since its release about a month ago.
Recent successful titles like Mario Kart World and Donkey Kong Bananza also contributed to their strong results.
Additionally, the game Tomodachi Life: Living the Dream has already sold more than 3.8 million copies since its launch two weeks ago.
Nintendo anticipates selling 16.5 million Switch 2 consoles in the fiscal year ending March 2027, which is nearly a 17% drop from the 19.86 million units sold the previous year. However, sales of Switch 2 software are forecasted to increase by 23% from 48.7 million units to 60 million units.
While game consoles typically see an initial spike in sales, there’s often a downward trend afterward. Conversely, software sales for the Switch are expected to grow. The Switch serves as both a home console and a portable gaming device.
Nintendo has indicated plans to introduce more software titles for the Switch 2 this year, including the latest installment of Final Fantasy and other games from various developers.
Following the financial announcements, Nintendo’s stock experienced a 3.6% increase.
