Nintendo Switch 2 Powers 51% Profit Surge

Nintendo has reported a substantial 51% rise in profit for the first three quarters of its fiscal year, concluding on December 31st, 2025. The company achieved a profit of 358.9 billion yen ($2.3 billion), a significant increase from the previous year's 237 billion yen. This surge is attributed to robust demand for the Switch 2 console, a hybrid device that functions both as a home entertainment system and a portable gaming unit, boasting improved graphics and a larger screen.

Sales for the period nearly doubled, climbing 99% to 1.9 trillion yen ($12 billion). Nintendo is projecting sales of 19 million Switch 2 units for the full fiscal year ending March 2026, with nearly 17.4 million units sold by the end of December 2025, marking the most successful launch for any Nintendo console. Software sales have also been strong, with "Mario Kart World" alone selling approximately 14 million units.

To maintain this impressive sales trajectory, Nintendo plans to release new titles for beloved franchises such as Super Mario, celebrating its 40th anniversary, and a new Splatoon game. External developers are also contributing with planned Switch 2 offerings, including titles from "Biohazard" and "Final Fantasy." Despite potential challenges like rising computer chip prices, analysts like Atul Goyal at Jefferies view concerns about weakening Switch 2 sales as speculative, citing strong December performance.