Nintendo Switch Two Sales Fall Sharply as Rising Component Costs Pressure Hardware Business

(MENAFN) Nintendo's Switch 2 console sales declined 41.2% year-on-year during the July-September quarter, according to the Japanese company's financial results released Thursday, as higher component costs weigh on its hardware business.

The gaming manufacturer sold 2.67 million Switch 2 units during the second quarter of its fiscal year, compared with 4.54 million in the corresponding period a year earlier and 3.82 million in the previous three months.

The figures, which reflect shipments into distribution channels, also showed a 30.1% decline compared with the preceding quarter.

For the six months ending in September, Switch 2 hardware sales reached 6.49 million units, marking a 37.4% decrease from the same period last year. Sales of the original Switch console also weakened, falling 32.7% to 1.27 million units.

Despite the downturn in hardware sales, Nintendo recorded a 49.1% increase in operating profit, which reached 216.5 billion yen ($1.37 billion) during the first half of its fiscal year.

The company attributed the stronger operating performance to stable demand for its software products, which represented a larger proportion of overall revenue, as well as a refund received during the first quarter for US tariffs that had previously been recognized as expenses.

Nintendo's revenue declined 12.1% to approximately $6.12 billion, while net profit climbed 11% to around $1.4 billion.

Software performance remained stronger than hardware results. Sales of games for the Switch 2 increased 18.8% to 24.49 million units during the six-month period, while software sales for the original Switch rose 6.8% to 65.73 million units.

Nintendo said newly released games had helped encourage consumers to adopt the Switch 2, providing support for the platform despite the substantial year-on-year decline in hardware sales.

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