Japan’s Nintendo said on Tuesday it is maintaining its annual operating profit forecast of 370 billion yen, nearly a one-third increase from the previous financial year, as the gaming giant weighs strong early demand for its new console against mounting industry challenges.
The Kyoto-based company also kept its full-year sales target for the Switch 2 unchanged at nineteen million units.
The device, which was launched in mid-2025, has seen robust initial uptake, although investors remain divided over whether that momentum can be sustained beyond the launch window.
Nintendo’s latest console follows the hugely successful original Switch, but the group has had to contend with global supply chain disruptions linked to US President Donald Trump’s trade war.
Hardware makers more broadly are also grappling with sharply higher memory chip prices, driven by booming investment in artificial intelligence.
Despite these pressures, analysts see Nintendo as relatively well insulated.
Jefferies analyst Atul Goyal said the company’s “sizable inventories and long-term contracts will shield it for … several quarters,” pointing to its stronger position compared with peers.
Pricing has also drawn attention. The Switch 2 retails at US$449.99 in the United States, significantly higher than the Japan-only version priced at 49,980 yen.
The premium is widely seen as reflecting inflationary conditions overseas. Still, Serkan Toto, founder of Kantan Games, said, “It would be harder for Nintendo to raise prices than Sony as the Switch 2 is not a high-end product.”
Goldman Sachs analyst Minami Munakata added that Nintendo’s long-standing policy of not selling hardware at a loss means “concerns about the Nintendo Switch 2 becoming unprofitable are overdone.”
Some investors have also expressed concern over the current pipeline of blockbuster titles, particularly the absence of a new release from “The Legend of Zelda” franchise. Upcoming launches include “Mario Tennis Fever,” which is set to hit shelves next week.
Reuters
