TOKYO — Nintendo reported a 52 percent jump in annual profit on Friday, lifted by strong demand for its new Switch 2 console and a lineup of hit game titles, even as the Kyoto-based company unveiled price increases it attributed to mounting global cost pressures.
Net profit for the fiscal year that ended in March reached 424 billion yen ($2.7 billion), up from roughly 279 billion yen a year earlier, the company said. Annual sales nearly doubled to 2.3 trillion yen ($15 billion) from 1.2 trillion yen, fueled by the hybrid home-and-handheld console.
The earnings report came alongside an announcement that Nintendo would raise the Switch 2’s price in Japan to 59,980 yen ($382), effective May 25, from the current 49,980 yen ($318). In the United States, the price will climb to $499.99 in September, up from $449.99.
The company said the increases were made “in light of changes in market conditions, and after considering the global business outlook,” without detailing the factors behind the change. The Associated Press noted that all major Japanese exporters are contending with U.S. President Donald Trump’s tariff increases and other rising costs that have been exacerbated by the war in Iran.
Even with the price hikes, Nintendo expects profit to slip 11 percent in the fiscal year through March 2027, to 2.1 trillion yen ($13 billion), a projection that incorporates the planned increases. The company forecast selling 16.5 million Switch 2 units during the period — a decline of nearly 17 percent from the 19.86 million consoles sold in the prior year. Such a trajectory is common for game machines after an initial launch surge, while game software sales tend to keep growing, the AP noted. Nintendo expects Switch 2 software sales to rise 23 percent, to 60 million units.
Recent hit titles included “Mario Kart World” and “Donkey Kong Bananza,” while the social-simulation game “Tomodachi Life: Living the Dream” has sold more than 3.8 million copies in the two weeks since its release. The company’s film “The Super Mario Galaxy Movie” has grossed more than $800 million since opening a month ago.
Nintendo promised additional Switch 2 software this year, including titles from outside developers and the latest installment of the “Final Fantasy” franchise. Nintendo’s stock price rose 3.6 percent after the earnings announcement.