Nintendo, Switch 2, device sales, and annual forecast remained in focus as the Japanese gaming group said it would stick to its target of selling 19 million units in the year to March 2026, after shipments surpassed 17 million units.
The Kyoto-based Nintendo is reporting that sales are strong. The reports of demand for their new console, the Nintendo Switch 2, staying stable support the thought that consumers are still interested in the Switch 2 after a massive launch for the system.
As of December, Nintendo sold 17.37 million Switch 2 consoles, which include an impressive 7 million sold during the holiday quarter.
Game titles lift Nintendo’s performance despite softer revenue
For the third quarter of fiscal year ending March 2026, Nintendo reported revenue of 806.32 billion yen, an 86% year-on-year increase, and a net profit of 159.93 billion yen, a 24% increase from the previous year, well ahead of analyst projections.
According to Cryptopolitan, the Nintendo Switch set a new record as the fastest selling video game hardware device in US history. According to data, Nintendo Switch 2 sold 1.6 million units in June 2025. This surpassed the previous record set by the PlayStation 4 in November 2013 with 1.1 million consoles.
Nintendo’s flagship titles were instrumental in driving hardware sales. ‘Mario Kart World’ has sold approximately 14 Million copies since the launch of the console, while ‘Donkey Kong Bananza’ has sold approximately 4.25 Million copies, representing the two largest selling titles on the new platform to date.
However, Nintendo’s stock price continues to be under pressure, with the stock having declined approximately 30% since hitting an all-time high of over 14,000 yen in August following the June launch of Super Mario Ultimate. This decline has come as investors have concerns about sustainability versus the short-term sales reporting.
A Tokyo-based portfolio manager said there was “a serious concern that holiday sales would be disappointing this year.”
Rising costs put margins and pricing strategy to the test
Investors have been watching cost pressures closely, including the dramatic increase in memory prices due to worldwide investment in AI. In addition, supply chain issues related to US trade tensions present challenges to hardware manufacturers regarding the future of their businesses.
Jefferies analyst Atul Goyal believes Nintendo is in good shape at this point.
“[Nintendo has] large amounts of inventory and long-term contracts to help protect them, at least for the next few quarters.”
Goyal.
For instance, the US price of the new Switch 2 is $449.99, while the Japanese price for the same Switch is around $320. According to Serkan Toto, founder of Kantan Games, he believes it would be much more simplistic for Sony to raise prices than for Nintendo to do so, since the Nintendo Switch 2 is not considered a premium product.
Additionally, Goldman Sachs analyst Minami Munakata stated he believes “that the Nintendo Switch 2 could become unprofitable are not accurate,” pointing out Nintendo’s long history of avoiding hardware losses.
Switch 2 was reportedly Nintendo’s biggest launch in the UK. The console also outperformed the original Switch by over two to one after launch. Switch 2 also allegedly outsold the Nintendo 3DS at launch, which was previously the firm’s biggest sale.
Nintendo plans to release “Mario Tennis Fever” in February and “Pokémon Pokopia” in March, with investors watching whether fresh titles can extend momentum into the next fiscal year.
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