Nintendo Beats Estimates in Q1 as Switch 2 Sales Cool and US Price Increase Looms

Nintendo reported fiscal first-quarter earnings on Thursday, August 6, beating analysts' revenue and profit estimates — helped by strong sales of first-party games and tariff refunds from the US — even as Switch 2 console sales saw a sharp year-on-year decline, CNBC and Bloomberg reported.

Switch 2 Momentum Cools, Cumulative Sales Grow

In the quarter ended June 30, 2026, Nintendo sold 3.82 million Switch 2 units — down 34 percent from the same period last year, when the console launched — bringing cumulative sales to 23.68 million units. Operating profit rose 150.5 percent year on year, powered by software attach rates and the previous year's launch-cost base, according to Nintendo's results.

US Price Increase Set for September 1

Nintendo confirmed that the Switch 2's US price will increase on September 1, 2026, as the company adjusts to tariffs on imported hardware. Shoppers have three weeks left to buy the console at its current US price, tech media noted. Bloomberg reported the strong results were also buoyed by US tariff refunds received in the quarter.

The results point to a maturing Switch 2 cycle: hardware growth is normalizing from its record launch, while software and services — including the blockbuster Mario film partnership with Illumination — carry the growth story into fiscal 2027.