Nintendo has reported a sharp slowdown in Switch 2 hardware sales during the July to September 2026 quarter, with shipments falling 41% year over year to 2.67 million units.
The decline comes amid rising memory costs, regional console price increases and weaker profitability. Nintendo's quarterly operating profit fell 16% to ¥73.9 billion ($477 million), missing analyst expectations of ¥88.1 billion.
Despite these challenges, Nintendo's software business remains healthy, with established franchises and new releases continuing to generate strong sales.
The company has also maintained its annual financial forecast, suggesting that it expects stronger revenue during the upcoming holiday shopping season.
Nintendo Switch 2 Shipments Slow as Quarterly Revenue Declines
Nintendo shipped 2.67 million Switch 2 consoles during the September quarter, compared with 3.82 million units in the preceding three months.
Quarterly revenue declined 15% to ¥448.2 billion ($2.89 billion), while net profit dropped 29% to ¥73.5 billion ($474 million).
However, Nintendo's overall financial performance for the first six months remained positive.
| Financial metric | Reported result |
|---|---|
| Six month revenue | ¥966 billion, down 12.1% |
| Six month operating profit | ¥216.5 billion, up 49.1% |
| September quarter operating profit | ¥73.9 billion, down 16% |
| Switch 2 quarterly shipments | 2.67 million units |
The stronger first quarter, supported by higher hardware shipments and a tariff refund, helped offset the weaker September results.
Nintendo Software Sales Remain Strong Despite Hardware Slowdown
Nintendo sold 24.49 million Switch 2 games during the first half of its fiscal year, while console shipments reached 6.49 million units.
Splatoon Raiders sold 2.42 million copies, followed by Fire Emblem: Fortune's Weave with 1.34 million.
Meanwhile, the original Switch continues contributing significantly to Nintendo's business.
Software sales for the older console reached 65.73 million units, supported by backward compatibility with Switch 2.
Tomodachi Life: Living the Dream recorded 8.81 million sales, while Rhythm Heaven Groove reached 2.89 million.
Nintendo's intellectual property business also expanded, generating ¥62.7 billion, an increase of 87.9%, supported by the success of The Super Mario Galaxy Movie.
The company maintained its full year forecast of ¥2.05 trillion in revenue and ¥370 billion in operating profit.
However, higher component costs and reduced hardware margins could continue affecting profitability, even if holiday demand improves.
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