Nintendo Forecasts 27% Drop in FY 2026 Net Profit Amid Slower Switch 2 Sales
Nintendo Co. announced on Friday that its net profit for the fiscal year ending March 2027 is projected to decline by 26.9 percent to 310 billion yen ($2 billion). This decrease is primarily attributed to slower sales of the Switch 2 console following a planned price increase. Despite this forecast, the company reported record-high sales of 2.31 trillion yen for the fiscal year ended March 2026, driven by the strong launch of the Switch 2. To counter rising costs for raw materials and memory chips, Nintendo will raise the Switch 2 retail price by 10,000 yen in Japan, $50 in the United States, and 30 euros in Europe starting late May and September. President Shuntaro Furukawa cited elevated crude oil prices due to Middle East conflicts as a factor increasing long-term production costs. Consequently, unit sales are expected to drop from 19.86 million to approximately 16.5 million in the current fiscal year. While overall sales are predicted to fall 11.4 percent to 2.05 trillion yen, operating profit is estimated to rise slightly by 2.7 percent to 370 billion yen.
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Nintendo Forecasts 27% Drop in FY 2026 Net Profit Amid Slower Switch 2 Sales
Nintendo Co. announced on Friday that its net profit for the fiscal year ending March 2027 is projected to decline by 26.9 percent to 310 billion yen ($2 billion). This decrease is primarily attributed to slower sales of the Switch 2 console following a planned price increase. Despite this forecast, the company reported record-high sales of 2.31 trillion yen for the fiscal year ended March 2026, driven by the strong launch of the Switch 2. To counter rising costs for raw materials and memory chips, Nintendo will raise the Switch 2 retail price by 10,000 yen in Japan, $50 in the United States, and 30 euros in Europe starting late May and September. President Shuntaro Furukawa cited elevated crude oil prices due to Middle East conflicts as a factor increasing long-term production costs. Consequently, unit sales are expected to drop from 19.86 million to approximately 16.5 million in the current fiscal year. While overall sales are predicted to fall 11.4 percent to 2.05 trillion yen, operating profit is estimated to rise slightly by 2.7 percent to 370 billion yen.
The Mainichi