Japanese video game company Nintendo reports rising profit, falling sales

Japanese video-game maker Nintendo reported an 11% increase in net profit during the first half of the fiscal year, despite a 12% decline in sales. The Kyoto-based company's April-September profit reached 220.9 billion yen, up from nearly 199 billion yen in the same period last year. However, overall sales for the six months fell to 966 billion yen.

Nintendo sold 1.27 million Switch game consoles and 6.49 million Switch 2 machines during the period, with popular titles like "Star Fox" and "Splatoon Raiders" contributing to strong software sales. The company's digital sales, including downloadable games, continued to grow, aided by the popularity of the 2026 animation film "The Super Mario Galaxy Movie."

Nintendo expects to maintain its fiscal year projections of a 310 billion yen profit, down 27% from the previous year, on 2 trillion yen in sales, also down 11%. The company faces challenges due to a global shortage of computer chips and rising prices caused by the recent surge in artificial intelligence adoption.