Japan’s Nintendo has maintained its annual operating profit forecast of 370 billion yen ($2.4 billion), marking an increase of nearly one-third compared with the previous financial year. The outlook reflects early confidence in the performance of the Nintendo Switch 2, which was launched in mid-2025.
The Kyoto-based company also reaffirmed its sales forecast of 19 million units for the Nintendo Switch 2 this financial year, despite ongoing debate among investors over whether the strong initial momentum can be sustained.
Nintendo is navigating a challenging operating environment shaped by supply chain disruptions linked to U.S. President Donald Trump’s trade policies, alongside rising prices for memory chips driven by heavy global investment in artificial intelligence. Hardware manufacturers across the industry have been affected by these cost pressures.
However, analysts believe Nintendo is better positioned than many of its rivals. Jefferies analyst Atul Goyal noted that the company’s sizeable inventories and long-term supplier contracts are likely to shield it from the worst of the cost increases for several quarters.
Pricing has also drawn attention. The Nintendo Switch 2 retails in the United States for $449.99, significantly higher than the Japanese-language version sold domestically for 49,980 yen ($320). The higher U.S. price is widely seen as reflecting current inflationary conditions rather than a shift towards premium positioning.
“It would be harder for Nintendo to raise prices than Sony, as the Nintendo Switch 2 is not a high-end product,” said Serkan Toto, founder of consultancy Kantan Games.
Goldman Sachs analyst Minami Munakata added that concerns over the Nintendo Switch 2 becoming unprofitable are overstated, highlighting Nintendo’s long-standing policy of not selling hardware at a loss.
Some investors remain cautious due to the absence of major franchise releases, such as new titles from The Legend of Zelda series, which were key drivers of the original Switch’s success. However, Nintendo is set to release Mario Tennis Fever next week, which the company hopes will support continued demand for the Nintendo Switch 2 in the months ahead.