Nintendo increases full-year forecast as H1 sales jump 110% to ¥1.1 trillion

Nintendo reported a robust first half, with net sales surging 110% to ¥1.1 trillion and operating profit rising 19.5%, largely driven by the successful launch of the Switch 2. The new console sold 10.36 million units, more than double the original Switch's initial performance, and its higher price point significantly boosted overall revenue. Consequently, the company has raised its full-year forecast, projecting net sales of ¥2.25 trillion and operating profit of ¥370 billion, reflecting strong anticipated continued demand for the Switch 2 and its software.

Analysis

Nintendo reported an exceptionally strong first half of its fiscal year, with net sales surging 110% year-over-year to ¥1.1 trillion and operating profit rising 19.5% to ¥145.1 billion. This robust performance was primarily driven by the successful launch of the Switch 2 on June 5, 2025, which sold 10.36 million units by the end of September. Ordinary profit also saw a significant increase of 60.5% to ¥236 billion.

The Switch 2's initial sales significantly outperformed its predecessor, selling more than double the units of the original Switch during the same launch period, and achieving 3.5 million units globally within its first four days. The console's higher price point was a key contributor to the substantial 110% jump in overall net sales, while Switch 2 software sales commenced strongly, reaching 20.62 million units worldwide.

Consequently, Nintendo has substantially increased its full-year forecast, now expecting net sales of ¥2.25 trillion (up 93.1%) and operating profit of ¥370 billion (up 30.9%). This revised guidance anticipates continued strong demand, projecting 19 million Switch 2 hardware units and 48 million Switch 2 software units for the full year, despite a projected 11.1% decline in original Switch hardware sales and minor year-on-year decreases in digital and IP-related sales.

Key Decisions for Investors

• Investors should consider the significant upside potential driven by the Switch 2's exceptional launch and the substantially revised full-year guidance.
• Monitor the sustained sales velocity of the Switch 2 hardware and its associated software attach rates as key performance indicators for continued growth.
• Evaluate the long-term impact of the new console's success against the natural decline of the original Switch and minor headwinds in digital and IP-related sales.