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Nintendo H1 Operating Profit Jumps 49.1% Despite Falling Switch 2 Hardware Sales

Writer: Sagar Mankar
Sagar Mankar
5 minutes ago
3 min read
Nintendo logo on cyan beside Mario in a red hat and blue suit on a white background

Nintendo has reported a 12.1% decline in net sales for the six months ended September 30, 2026, while operating profit climbed 49.1% to ¥216.5 billion ($1.3 billion). Lower hardware sales weighed on revenue, but strong software performance and a first-quarter US tariff refund helped the bottom line. Nintendo noted that the tariffs “related to the refunds were primarily borne by the company rather than passed on to consumers through product prices.”


Key Numbers

Here is the financial snapshot for the half year:

  • Net sales: ¥966 billion ($6.1 billion), down 12.1%

  • Operating profit: ¥216.5 billion ($1.3 billion), up 49.1%

  • Ordinary profit: ¥300.6 billion ($1.9 billion), up 27.4%

  • Hardware sales (Switch and Switch 2): 7.76 million units

  • Software sales (Switch and Switch 2): 90.22 million units


Software units grew, yet Nintendo’s dedicated video game platform segment still fell 15.3% to ¥903.3 billion ($5.7 billion). The company also pointed to the continued weakness of the yen as a factor.


How Did Switch 2 and Switch 1 Perform?

Switch 2 hardware sales dropped 37.4% to 6.49 million units, down from 10.36 million a year earlier. Even so, Nintendo said “many consumers continued to adopt the system, spurred on by factors like the release of new titles.” As per the company, cumulative sell-through has exceeded 25 million units since the June 2025 launch.


The original Switch also slowed. Hardware sales fell 32.7% to 1.27 million units from 1.89 million. The OLED model led with 63,000 units, followed by the standard model at 35,000 and the Lite at 29,000. Overall, Switch 1 currently stands at 157.20 million units sold, just 3 million shy of the PS2's all-time record.


Nintendo had already forecast lower hardware sales. It still expects to sell 16.50 million Switch 2 units by the end of the current fiscal year.


Which Games Drove Software Sales?

Software was the bright spot. Switch 2 software rose 18.8% to 24.49 million units, up from 20.62 million. Original Switch software grew 6.8% to 65.73 million units.


Notable releases from the period include:

  • Tomodachi Life: Living the Dream: 8.81 million units

  • Rhythm Heaven Groove: 2.89 million units

  • Splatoon Raiders (July): 2.42 million units

  • Fire Emblem: Fortune’s Weave (September): 1.34 million units

  • Star Fox (June): 1.17 million units


Nintendo says it will keep the momentum going. “We aim to grow the Nintendo Switch 2 installed base by working to expand sales of existing titles and continuously introducing these new titles. Software publishers also plan to release a range of titles,” the company said.


What Is Coming Next?

The next stretch of the fiscal year includes several big names:

  • The Legend of Zelda: Ocarina of Time remake (solid start, with 96 on Metacritic)

  • Nintendo Switch Sports Resort

  • Switch 2 re-releases of Pikmin 2 and Xenoblade Chronicles 3

  • Metroid Ravenous in January 2027


Nintendo slide titled Titles Released During This Fiscal Year, showing a collage of game cover art and logos.

Is Nintendo Still Holding On to Physical Games?

Yes, though digital is gaining ground. Digital sales made up 60.7% of total software sales, totaling ¥249.6 billion ($1.5 billion). Nintendo credited this to higher demand for downloadable versions of packaged software. Physical share falls 6.2% from last year.


The share would likely look even higher if Mario Kart World digital copies bundled with Switch 2 consoles were counted. Nintendo has also insisted it has “no plans to ditch physical games.”


Will the Switch 2 Price Go Up Again?

Not for now. According to Nintendo president Shuntaro Furukawa, the company has secured enough memory to build more consoles and does not plan another price increase.


The console already got pricier earlier this year. Hikes took effect on September 1 in the US, Canada, Japan and Europe, adding $50, €30 or ¥10,000 depending on the region. The pressure comes from AI driven memory and storage shortages, which have also pushed PlayStation and Xbox to raise prices. The same crunch reportedly led one of Nintendo’s longtime ROM suppliers to exit the business. Nintendo has not commented on that.


Top Selling Switch 2 Games (as of September 2026)

  • Mario Kart World: 16.48 million

  • Donkey Kong Bananza: 5.05 million

  • Pokémon Legends: Z-A, Switch 2 Edition: 4.04 million (13.31 million combined with the Switch version)

  • Pokémon Pokopia: 4.04 million

  • Splatoon Raiders: 2.42 million

  • Kirby Air Riders: 1.94 million

  • Fire Emblem: Fortune’s Weave: 1.34 million

  • Super Mario Party Jamboree, Switch 2 Edition: 1.28 million (12.01 million combined with the Switch version)

  • Star Fox: 1.17 million


Top-Selling Switch Games (as of September 30, 2026)

  • Mario Kart 8 Deluxe: 72.00 million

  • Animal Crossing: New Horizons: 50.63 million

  • Super Smash Bros. Ultimate: 38.50 million

  • The Legend of Zelda: Breath of the Wild: 34.28 million

  • Super Mario Odyssey: 31.06 million

  • Pokémon Scarlet and Violet: 28.66 million

  • Pokémon Sword and Shield: 27.36 million

  • The Legend of Zelda: Tears of the Kingdom: 22.90 million

  • Super Mario Party: 21.39 million

  • New Super Mario Bros. U Deluxe: 19.22 million

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