Nintendo's Profit Surges on Stronger Game Software Sales, 'Mario' Movie Hit — Update

By Kosaku Narioka and Ronnie Harui

Nintendo reported sharply higher quarterly profit, driven by stronger game software sales and the success of a new "Super Mario" movie, even as sales of Switch 2 consoles declined.

The Japanese videogame maker said Thursday that "The Super Mario Galaxy Movie," its second animated film based on the popular videogame series, proved a big success, grossing more than $1 billion since its global release in April. Intellectual property-related income more than doubled for the quarter to 34.8 billion yen, equivalent to $220.6 million, thanks to the movie.

Software sales increased partly due to social-simulation game hits such as "Pokemon Pokopia" and "Tomodachi Life: Living the Dream," Nintendo said.

The company's net profit rose 54% from a year earlier to Y147.42 billion for the three months ended June. That beat the estimate of Y74.40 billion in a poll of analysts by data provider Visible Alpha. Quarterly earnings were also helped by a refund of U.S. tariffs. Revenue fell 9.5% to Y517.81 billion.

The Japanese company maintained its annual sales forecast of 16.5 million Switch 2 consoles, despite reporting a decline in quarterly sales to 3.82 million units due to a high base a year earlier.

Nintendo began selling the Switch 2 console in June last year, aiming to build on the success of the console's predecessor, whose popularity was amplified by a pandemic-driven videogame boom. The device features a larger, more responsive screen with enhanced graphics performance.

Analysts expect videogame-console makers to face mounting headwinds from surging memory-chip prices.

Nintendo said in May that it would raise Switch 2 console prices in Japan, the U.S. and some other regions. The device will cost about $500 in the U.S. from September, up from about $450 currently.

The Kyoto-based company has been trying to diversify its revenue streams beyond videogames. It has expanded into movies, theme parks and other forms of entertainment by leveraging its popular characters and game titles.

A live-action film based on "The Legend of Zelda" is scheduled for 2027. Nintendo recently signed a licensing partnership with Hasbro, allowing the U.S. company to create toys based on videogame franchise "The Legend of Zelda."

For the fiscal year ending March 2027, Nintendo continues to expect revenue to fall 11% to Y2.050 trillion and net profit to drop 27% to Y310.00 billion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com and Ronnie Harui at ronnie.harui@wsj.com

(END) Dow Jones Newswires

August 06, 2026 05:37 ET (09:37 GMT)