By Islam El-Sakka
Japanese video game company Nintendo reported an 11% increase in net profit for the April-September period, even as sales fell 12% compared to the same period last year.
Profit Rises, Sales Decline
Net profit for the first half of the fiscal year reached 220.9 billion yen ($1.4 billion), up from 199 billion yen a year earlier. Revenue slipped to 966 billion yen.
Switch and Switch 2 Sales
The company sold 1.27 million Switch consoles and 6.49 million Switch 2 units during the six months.
Software and Digital Growth
New titles "Star Fox" and "Splatoon Raiders" sold briskly, while "Mario Kart World" continued strong demand. Digital sales, including downloadable games, continued to surge.
Film Boost and Outlook
The 2026 animated film "The Super Mario Galaxy Movie" also contributed to earnings. Nintendo maintained its full-year forecast through March 2027, projecting 310 billion yen in profit, down nearly 27% from the previous year, on 2 trillion yen in sales, an 11% decline.
Chip Shortage and Stock Reaction
The company faces a computer chip shortage and rising prices driven by the global artificial intelligence boom. Nintendo shares rose 6.3% in Tokyo trading on Thursday.
