Nintendo's latest earnings report says the Switch 2 continues to outpace the original Switch's adoption while software sales and player engagement remain strong. Learn more about the company's latest financial results and future outlook here.
Nintendo Compares the Switch 2's Adoption Pace to the Original Switch
Numbers Continue to Grow Despite Less Revenue Compared to Last Year
Nintendo has reported that the Switch 2 is continuing to outperform the original Nintendo Switch at the same stage of its lifecycle. This comes even as hardware shipments declined from the record-setting levels seen during the console's launch quarter.
In their financial results for the first quarter of the fiscal year ending March 2027, Nintendo stated that the first quarter sales for the Nintendo Switch 2 "did not reach the level seen in the same quarter of last fiscal year, which was when the console launched." The company added that "for a hardware system in its second year, sales compare favorably to the adoption trajectory of Nintendo Switch."
To illustrate this, the company presented a chart comparing global sell-through, or sales to consumers, between the Nintendo Switch and Nintendo Switch 2 across their respective first years. Nintendo did not disclose specific consumer sales figures for the comparison, but said the latest data shows the Switch 2 tracking ahead of the original console’s adoption curve despite entering its second year on the market.
The comparison comes after Nintendo reported shipping 3.82 million Nintendo Switch 2 units during the April to June quarter, down 34.4% from the 5.82 million units shipped during the same period a year earlier. Although the year-over-year (YoY) decline reflects the exceptionally high demand generated by the system’s launch, Nintendo said many consumers continued to adopt the platform supported by the release of new software and other factors.
Software sales continued to grow during the quarter. Nintendo Switch 2 software reached 9.46 million units, an increase of 9.2% YoY, while software for the original Nintendo Switch climbed 38.6% to 33.81 million units.
Nintendo credited first-party releases including Tomodachi Life: Living the Dream, which sold 7.94 million units during the quarter, alongside Pokémon Pokopia and a broad lineup of third-party titles. Digital sales also increased 90% YoY to 132.7 billion yen, accounting for 61.5% of software sales during the period.
Moreover, the company reported that annual playing users remained above 100 million for the second consecutive year, reaching 130 million Nintendo Accounts that played Nintendo Switch 2 software over the previous 12 months. The company said Nintendo Accounts have helped maintain long-term relationships with players and provided a foundation for the transition from the original Nintendo Switch to the Switch 2.
The quarter ended with net sales of 517.8 billion yen, or about US$3 billion, down 9.6% YoY, while operating profit rose 150.5% to 142.5 billion yen. Nintendo said the results were supported by stronger software sales, a higher software mix, and approximately US$300 million in refunds related to U.S. IEEPA tariffs, which reduced cost of sales.
Even though the company generated less revenue than it did a year ago, stronger software sales and lower costs still allowed profits to grow significantly.
Regardless of these, Nintendo left their full-year forecast unchanged. They maintained their expectation of shipping 16.5 million Switch 2 systems and 60 million Switch 2 software units during the fiscal year ending March 2027.
The company promised they will continue supporting the platform with a steady stream of new games, adding that more are currently available for Switch 2 than were released during the original Switch’s first year, with numerous additional titles in development. Upcoming first-party releases include Fire Emblem: Fortune's Weave, Nintendo Switch Sports Resort, The Legend of Zelda: Ocarina of Time, and several big titles planned for 2027.
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Source:
Nintendo | Financial Results Explanatory Material 1st Quarter of Fiscal Year Ending March 2027
