Nintendo has reported a significant 51 per cent surge in profit for the first three quarters of its fiscal year, driven by the continued success of its revamped Switch 2 console.
The Japanese video-game giant announced a profit of 358.9 billion yen (£1.9 billion) for the April-December period, a substantial increase from 237 billion yen recorded during the same timeframe a year prior. Sales nearly doubled, climbing 99 per cent to 1.9 trillion yen (£10.1 billion), fuelled by robust demand for the Switch 2, which launched last year.
The Switch 2 operates as a hybrid device, functioning both as a home console and a portable system, featuring a larger screen and enhanced graphics. Nintendo, the company behind the iconic Super Mario and Pokémon franchises, maintained its projection for a 350 billion yen (£1.9 billion) net profit for the fiscal year ending in March.
The company anticipates selling 19 million Switch 2 machines by the fiscal year's close, having already shifted nearly 17.4 million units by the end of December – marking its most successful console rollout to date.
Software sales also performed strongly, with Mario Kart World selling approximately 14 million units. Nintendo estimates that 129 million people globally are currently playing on the Switch platform.
Despite concerns about rising computer chip prices and the challenge of consistently releasing appealing software, analyst Atul Goyal from Jefferies dismissed worries about weakening Switch 2 sales as "overblown," citing strong December figures. He added: "We maintain that fears regarding memory cost hike are speculative and strategically manageable."
Looking ahead, Nintendo plans more titles for the Super Mario Brothers franchise, which celebrated its 40th anniversary last year, alongside a new Splatoon game. Third-party developers are also preparing Switch 2 offerings, including Biohazard and Final Fantasy titles.
Following a period of decline after summer highs, Nintendo's stock saw a 1.8 per cent jump on Tuesday.
