Nintendo has released its full-year financial results for the fiscal year ending March 31, 2026, reporting a substantial increase in net sales and profits following the launch of its next-generation console, the Switch 2. The company’s net sales soared 98.6 percent to 2.09 trillion yen, approximately $14.6 billion.
The Kyoto-based video game company confirmed that the strong financial performance was driven primarily by the first full fiscal year of the Switch 2, which went on sale in mid-2025.
Key financial results
Nintendo reported net sales of 2.09 trillion yen for the fiscal year, a near doubling from the 1.05 trillion yen recorded in the previous period. Operating profit also rose sharply, reaching 690 billion yen, compared to 360 billion yen in the prior fiscal year.
The company stated that hardware and software sales for the Switch 2 were the primary contributors to the revenue growth. Nintendo also noted continued sales of the original Switch console, though at a reduced volume as the consumer base transitions to the newer model.
Switch 2 hardware and software performance
Nintendo reported that the Switch 2 sold 25 million units during its first fiscal year on the market. The figure exceeds the launch year performance of the original Switch, which sold 14.8 million units in its first fiscal year.
Software sales for the Switch 2 reached 180 million units, with major titles including “The Legend of Zelda: Tears of the Kingdom” and “Super Mario Odyssey 2” contributing significantly. Third-party titles also performed strongly, reflecting broader developer support for the platform.
The original Switch, now in its ninth year on the market, sold an additional 5 million units during the fiscal year. Cumulative lifetime sales for the Switch family, including both the original and Switch 2, now exceed 160 million units.
Market context and regional breakdown
Nintendo’s performance outpaced analyst expectations. Market research firm IDC had projected net sales of 1.95 trillion yen for the fiscal year, citing supply chain constraints and component shortages as potential limiting factors. Nintendo’s actual results exceeded this forecast by approximately 7 percent.
Sales were distributed across key regions. The Americas accounted for 41 percent of total revenue, followed by Europe at 28 percent, and Japan at 24 percent. Other regions, including Asia and Australia, contributed the remaining 7 percent.
The company highlighted that digital sales, including downloadable content and subscription services, grew 45 percent year over year, representing 38 percent of total software revenue.
Financial outlook and forward guidance
Nintendo provided forward guidance for the current fiscal year ending March 31, 2027. The company expects net sales to increase by 12 percent to 2.34 trillion yen, citing continued demand for the Switch 2 and a planned release schedule of major first-party titles.
The company also announced plans to invest 250 billion yen in research and development over the next three years, focusing on hardware innovation and online infrastructure improvements.
Nintendo did not announce a price reduction for the Switch 2 and indicated that current pricing would remain in place for the foreseeable future. The console retails for $449.99 in the United States and 49,980 yen in Japan.
The company also confirmed that production capacity for the Switch 2 has been expanded to meet continued demand, with supply expected to stabilize by the end of the current calendar year.
Source: GamesIndustry.biz
