Nintendo’s latest earnings showed a strong fiscal-year profit gain while the company set expectations for a decline in the year ahead, and it also moved to higher prices for its newest console. The Kyoto-based company behind franchises including Super Mario and Pokemon reported Friday that its net profit rose 52% in the fiscal year that ended in March, boosted by what it described as solid sales of its Switch 2 hardware and software.
Nintendo said its net profit reached 424 billion yen, up from nearly 279 billion yen in the prior fiscal year. It also reported that annual sales increased 99% to 2.3 trillion yen, reflecting demand for Switch 2, while Nintendo said sales for the first-generation Switch declined.
As part of the earnings release, Nintendo announced it would raise the Switch 2 price in Japan to 59,980 yen ($382) effective May 25, from 49,980 yen ($318). Nintendo said the change reflected “in light of changes in market conditions, and after considering the global business outlook,” but did not provide additional detail on the drivers.
In the United States, Nintendo said the Switch 2 price will rise to $499.99 in September from $449.99. The company linked the broader cost environment to higher expenses facing major Japanese exporters, citing U.S. President Donald Trump’s tariff hikes and other higher costs that were worsened by the war in Iran.
Nintendo’s outlook for the fiscal year ending March 2027 calls for lower profit despite the planned price increases. The company said it expects an 11% decline in profit to 2.1 trillion yen ($13 billion) over that period.
Nintendo also forecast weaker hardware volume for Switch 2, projecting it will sell 16.5 million machines in the fiscal year through March 2027, down nearly 17% from 19.86 million in the last fiscal year. At the same time, Nintendo forecast continuing growth in software sales, saying it expects Switch 2 software sales to rise to 60 million, up 23% from 48.7 million.
Nintendo cited the typical pattern of console sales accelerating after launch and then declining as the product matures, while software sales tend to keep growing. It also said it expects more Switch 2 software titles this year, including releases from other creators, among them the latest Final Fantasy.
Alongside the earnings and forecasts, Nintendo highlighted several recent products, including the film “The Super Mario Galaxy Movie,” which it said has grossed more than $800 million since its release a month ago. It also pointed to game software offerings such as “Mario Kart World” and “Donkey Kong Bananza,” and it said “Tomodachi Life: Living the Dream” has sold more than 3.8 million units since going on sale two weeks ago.
Nintendo shares rose 3.6% after the earnings were announced, according to the report.