Nintendo Switch 2 sales plunge 41% as price hikes and memory crunch bite

Tokyo, November 5 — Japan's gaming giant Nintendo disclosed a 29% plunge in its quarterly net profit due to dwindling sales of its Switch 2 console, but affirmed its annual earnings projections. A remake of the 1990s action-adventure hit, The Legend of Zelda: Ocarina of Time, which rolls out today, has ignited nostalgic fan enthusiasm. Analysts will, however, be keen to gauge the title's potential to revamp Switch 2 sales, which experienced a record-breaking 2025 launch as the fastest-selling games console globally.

Nintendo recorded an 11% surge in net profit year-on-year for the first half of 2026-27. However, in the second quarter from July to September, net profit fell 29% to 73.5 billion yen (US$465.3 million), falling short of the 82.2 billion yen estimate from a Bloomberg analyst poll. The company kept its annual net profit forecast at 310 billion yen.

"Although sales declined year-on-year due to lower hardware unit sales, operating profit rose nearly 50% in the first six months, thanks to steady game sales and a windfall from US tariff refunds," Nintendo reported.

The firm sold close to 6.5 million Switch 2 units in the first half, down from nearly 10.4 million the previous year when the device was new. This year, Nintendo jacked up the Switch 2 price, as the global AI boom drives up memory chip costs, a key component in everyday electronics. Some analysts suggest the absence of a blockbuster game to spur Switch 2 adoption among gamers has dampened console sales.

"While working to bring Nintendo Switch 2 to more consumers, we will also leverage the Nintendo Switch hardware installed base and rich software lineup to expand software sales and maintain engagement," the company said in a statement. Nintendo's newest installment of its enduring Zelda series, Ocarina of Time, is being rolled out worldwide as part of the 40th anniversary of the franchise.

It has already been hailed by Metacritic with a stellar 96 out of 100 score, placing it among the year's highest-rated releases so far. Sony boosted its annual earnings forecast for the current fiscal year, citing strong sales of games, music, and movies. The company now projects a 1.33 trillion yen earnings for the year to March, up from the previous upgraded forecast of 1.21 trillion yen issued in July.

Sony cited favorable foreign exchange rates and robust sales of new titles in the game segment. The movie sector credits a theatrical revenue boost primarily due to the blockbuster "Spider-Man: Brand New Day" release in July. The game segment is expected to benefit from the highly anticipated November launch of Grand Theft Auto VI, which is anticipated to be one of the biggest releases in gaming history.