Nintendo Raises Switch 2 Sales Forecast as Earnings Soar — Update

By Kosaku Narioka

Nintendo boosted its Switch 2 sales forecast and earnings guidance for the full year, signaling confidence in the momentum of its new flagship device following sharply higher first-half profit.

The Japanese videogame maker on Tuesday reported stronger-than-expected net profit for the six months ended September as revenue more than doubled on strong sales of its new console and the latest titles from popular series like "Mario Kart" and "Donkey Kong." Nintendo also raised its dividend forecast as it upgraded its payout policy.

It now expects to sell 19 million Switch 2 consoles by March next year, up from the previous forecast of 15.0 million. As of September, the device has sold 10.4 million units.

Nintendo is looking to repeat the success of the original Switch, whose popularity was amplified by a pandemic-driven videogame boom.

The Switch 2, launched in June, is Nintendo's first new gaming device in eight years. The gadget, which retails for about $450 in the U.S., features a larger, more responsive screen with enhanced graphics performance, and players can chat or share their game screen with friends online.

Investors have so far welcomed Nintendo's moves, sending its stock up about 40% this year on hopes that the new console will boost earnings.

The Kyoto-based company has also been trying to diversify its revenue streams beyond videogames, with some success. It has expanded into movies, live events and other forms of entertainment by leveraging its popular characters and game titles. In the first half, intellectual property-related income fell 12% to 33.3 billion yen due to a decline in movie-related revenue.

There are a few major projects in the pipeline, including "The Super Mario Galaxy Movie," due to be released in April 2026, which the videogame maker is co-financing with Universal Pictures. The previous Super Mario movie, released in 2023, grossed more than $1.3 billion worldwide. A live-action film based on its popular game series "The Legend of Zelda" is scheduled for release in 2027.

Nintendo said Tuesday that net profit surged 83% from a year earlier to Y198.94 billion, equivalent to $1.29 billion, for the six months ended September. Analysts had expected Y163.5 billion, according to a consensus by data provider Visible Alpha. Revenue more than doubled to Y1.100 trillion.

For the year ending March, the videogame maker said it expects to sell 48 million Switch 2 software copies, up from 45 million forecast previously. Nintendo sold 20.6 million copies in its first half. Racing game "Mario Kart World," released on the same day as the hardware, sold 9.6 million copies, while action-adventure game "Donkey Kong Bananza," released in July, sold 3.5 million copies. The company said it will continue introducing new titles to expand the new device's user base.

Nintendo forecast full-year revenue to increase 93% to Y2.250 trillion and net profit to climb 25.5% to Y350.0 billion. It previously projected revenue of Y1.900 trillion and net profit of Y300.00 billion. The company said it plans to pay annual dividends of Y181 a share, up from Y129 previously forecast.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

November 04, 2025 06:00 ET (11:00 GMT)