Nintendo Switch 2 sales fall 37.4% in half year

Nintendo reported that Switch 2 hardware sales fell 37.4% year over year in the six months ended September 30, even as software sales and operating profit increased. The company sold 6.49 million consoles in the period, compared with 10.36 million a year earlier, and left its full-year sales forecast unchanged. Switch 2 software sales rose 18.8% to 24.49 million units. Nintendo’s half-year operating profit increased 49.1% to 216.5 billion yen, while net sales declined 12.1% to 966.0 billion yen. Net profit rose 11% to 220.9 billion yen. Nintendo attributed the higher operating profit partly to steady software sales and a refund of U.S. tariffs recorded in the first quarter as a reduction in cost of sales. The company said it had borne most of the tariff costs rather than passing them on to consumers through product prices. The refund was about 300 million yen, according to the company’s results details. The company’s unchanged forecast for the fiscal year ending March 31, 2027, calls for sales of 16.50 million Switch 2 consoles, along with net sales of 2.05 trillion yen, operating profit of 370 billion yen and net profit of 310 billion yen. Nintendo said the outlook includes...