Nintendo had a strong quarter – for the three-month period spanning April to June, the company saw operating profit skyrocket with a 150% increase. It went from JPY 56.9 billion for the same period last year to JPY 142.5 billion (this converts to around $902 million). And this is despite net sales declining 9.5% to JPY 517.8 billion ($3.28 billion).
How did this happen? Well, tariff refunds in the US worked out to around $300 million. The company writes that “the tariffs related to the refunds were primarily borne by the company rather than passed on to consumers through product prices.” Yes, Nintendo increased the price of the Switch 2 recently, which was apparently caused by component price increases rather than tariffs.
The quarter may have been profitable, but console sales are down – Nintendo sold 3.82 million Switch 2 units (down 34.4% compared to last year) and 0.66 million original Switch models (down 31.8%).
Game sales were up over the same period, however. Interestingly, Switch 2 titles only went up by 9.2% for a total of 9.46 million games sold. Meanwhile, games for the original Switch went up an impressive 38.6% for a total of 33.81 million units.
The press release highlights several titles – Tomodachi Life: Living the Dream sold 7.94 million copies, while Pokémon Pokopia sold 1.27 million copies.
Digital sales – downloadable versions of packaged software, download-only software, add-on content and Nintendo Switch Online, etc. – also brought in big bucks. These sales went up 90% to a total of JPY 132.7 billion.
Additionally, Nintendo reports that sales of its IP-related business went up 107% to JPY 34.8 billion thanks to the success of The Super Mario Galaxy Movie.
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