Nintendo's Switch 2 launch drove a 132% YoY sales surge, but margins compressed due to hardware mix and launch costs — typical for new console cycles. Despite blowout demand, Nintendo maintains conservative guidance, suggesting full-year Switch 2 sales should easily surpass targets, especially with the Christmas quarter ahead. My long-term model forecasts robust free cash flow growth, but at current valuations, Nintendo appears at best fairly valued with a limited margin of safety.
Nintendo is raising the price of its original Switch consoles and other products, effective Aug. 3. The decision was made "based on market conditions," Nintendo said.
Nintendo on Friday said quarterly revenue had more than doubled year-on-year thanks to the Switch 2, which became the world's fastest-selling console after its launch in June.
Sales of Nintendo's new Switch 2 now total 5.82 million units, the company said Friday. In this article 7974.T-JP
Nintendo on Friday said operating profit grew 4% to 56.9 billion yen ($378 million) in the April-June quarter, beating analyst estimates.
Nintendo shares have rallied 46% this year, adding more than $39 billion to the stock's value. The surge has been driven by strong demand for the newly released Switch 2 console.
The hardware improvements in the new $450 Nintendo will make this an automatic upgrade for fans of the two-in-one console.
Parents beware. Christmas came early in 2025 as Nintendo Co., Ltd.
The system went on sale on June 5 with a retail price starting at $449.99.
The Switch 2 has smashed records to become the fastest-selling console ever after gamers snapped up 3.5 million units in its first four days, Nintendo said Wednesday.
The sales figures, reported by the Japanese company on Wednesday, put it on the path to realizing its aim of selling 15 million units in its fiscal year ending March 2026. The record initial sales of the Switch are in line with the strong demand analysts had predicted, but the rush has put into question Nintendo's ability to meet demand.
Japan's Nintendo said on Wednesday it had sold more than 3.5 million Switch 2 units in the first four days after its launch, making the console the company's fastest-selling gaming device to date.