Credit: Nintendo
Nintendo reported a decline in Switch 2 sales: the company sold 3.82 million consoles in the quarter, a 34.4% decline year-on-year. Nintendo attributes the demand to the release of new games and other factors, according to Engadget. Total Switch 2 sales reached 23.68 million units.
Sales of first-generation Switch consoles also continued, falling 31.8% year-over-year to 660,000 units in the last quarter. According to Nintendo representatives cited by CNBC, the migration to the Switch 2 continued even as overall demand for game consoles declined due to rising prices. Nintendo management estimates the negative impact of higher memory costs and customs tariffs at approximately $630 million. The company’s operating profit for the quarter increased by 150.5% to $904 million, so it’s impossible to claim that all of Nintendo’s financial indicators declined last quarter. However, accelerated Switch 2 sales in anticipation of price increases, as well as refunds of overpaid customs duties from the US budget, helped.
Software sales were strong, with Tomodachi Life: Living the Dream and Pokémon Pokémon Pokémon selling 7.94 million and 1.27 million copies, respectively. In its home market of Japan, Nintendo was forced to raise prices for the Switch 2 console at the end of May, but this hasn’t had much of an impact on consumer demand yet. In the US, the price of this generation of consoles will increase from $500 to $550 on September 1st.