Japanese video game company Nintendo reports rising profit, falling sales

Japanese video-game developer Nintendo disclosed on Thursday a 11% rise in net profit for the first half of the fiscal year, while its sales experienced a 12% decrease. The Kyoto-based company's profit for the April-September period amounted to 220.9 billion yen, compared to nearly 199 billion yen in the same period last year. However, sales during the six-month span fell to 966 billion yen, down 12% from the previous year.

Nintendo, known for producing popular franchises such as Pokemon, Super Mario, and Legend of Zelda, managed to sell 1.27 million Switch game consoles and 6.49 million Switch 2 units during the six-month period. The company's game software, including titles like Star Fox and Splatoon Raiders, saw strong sales, while earlier releases like Mario Kart World remained in demand.

Nintendo's digital sales, including revenue from downloadable games, continued to grow. The success of The Super Mario Galaxy Movie, a 2026 animated film, also contributed to the company's improved financial performance. However, Nintendo's sales typically peak during the holiday seasons of Christmas and New Year's.

The company did not provide detailed breakdowns of its quarterly earnings. Nintendo maintained its projections for the full fiscal year, ending March 2027, at a profit of 310 billion yen, which is nearly 27% lower than the previous fiscal year's 2 trillion yen in sales, a 11% decrease. The company faces challenges similar to other technology firms, including a global chip shortage and rising prices due to the recent surge in artificial intelligence.