NTDOY
SONY
Press start: the numbers looked great
Nintendo’s FY2026 scorecard was flashy. Revenue nearly doubled to 2.31 trillion yen, net profit jumped 52.1% to 424 billion yen, and Switch 2 sales hit 19.86 million units. That’s the kind of sheet that makes investors sit up straight and stop doom-scrolling for a second.
But there’s a catch, because of course there is. Regular Switch sales fell hard to 3.8 million units from 10.8 million a year earlier, which is a reminder that even iconic consoles eventually lose a bit of their superpower.
The sequel now costs more
Nintendo also said it’s raising Switch 2 prices in several markets during the fiscal year ending March 2027. In Japan, the Japanese-language model jumps to 59,980 yen from 49,980 yen on May 25th, 2026. In the U.S., the price goes to $499.99 from $449.99 on September 1st, 2026, and Europe gets 499.99 euros from 469.99 euros on the same date.
That’s not exactly the kind of message that screams “cheap family fun.” Nintendo said the hike is tied to rising memory and materials costs, tariffs, and higher shipping expenses linked to the Iran conflict. Translation: the supply chain is acting like that one friend who always shows up late and over budget.
The outlook is the real buzzkill
Nintendo’s forecast for FY2027 is softer than investors probably wanted:
- net sales: 2.05 trillion yen, down 11.4%
- net profit: 310 billion yen, down 26.9%
- Switch 2 hardware sales: 16.5 million units, down 16.9%
- dividend: 162 yen, down from 219 yen
That’s the kind of guidance that makes a good earnings day feel like it was filed next to a warning label. Analysts quoted in the story basically said Nintendo is usually conservative, but this one looks unusually weak, especially with component shortages still squeezing hardware production.
Big picture: Nintendo still has the kind of IP other companies would sell a kidney for, but the market is now watching whether the Switch 2 can stay a must-have when it costs more and the hardware math gets uglier.