Nintendo has revised its expectations for the Switch 2, projecting sales of 19 million units for the fiscal year ending March 2026, up from the earlier forecast of 15 million.
The Japanese gaming company’s confidence stems from stronger-than-expected demand for its latest console, which sold 10.36 million units by September and helped push revenue and profit well beyond analyst estimates.
The upgraded outlook signals more than momentum; it reflects how Nintendo is adapting its production strategy, pricing, and content pipeline to sustain growth amid shifting global economic conditions.
Switch 2 drives sharp rise in revenue and profit
For the quarter ending September 30, Nintendo reported revenue of ¥527.2 billion ($3.7 billion) against market expectations of ¥461.76 billion.
Net profit surged to ¥102.9 billion, exceeding forecasts of ¥63.6 billion, with revenue rising over 90% year-on-year and profit up by more than 270%.
The Switch 2 launch in June propelled the company’s shares up nearly 40% this year. While quarterly console sales dipped from the launch peak, Nintendo described overall demand as strong.
Software sales also remained solid, with 11.95 million units sold in the September quarter, led by titles such as Mario Kart World and Donkey Kong Bonanza.
Earlier this year, Nintendo faced widespread shortages during the Switch 2 launch, with more than 2.2 million customers vying for units in Japan
Forecast boost and production ramp-up
Nintendo’s optimism has translated into revised financial projections. It now expects net sales of ¥2.25 trillion for the year, up from ¥1.9 trillion previously, and has raised its profit forecast by nearly 17% to ¥350 billion.
The firm also lifted its operating income forecast to ¥370 billion and increased its dividend payout ratio to 60%.
To meet sustained demand, Nintendo has asked its manufacturing partners to produce up to 25 million units of the Switch 2 by March 2026.
Despite the console’s higher retail price of about $450, its hybrid design, backward compatibility, and launch line-up have kept it in strong demand across Japan and the US.
Strategic focus on software and global demand
Nintendo’s strategy now centres on expanding the Switch 2’s ecosystem. The company aims to replicate the long lifecycle of the original Switch, released in 2017, by relying on flagship titles and franchise-driven engagement.
The recent release of Pokémon Legends: Z-A alongside bundled offers has strengthened early adoption, while upcoming launches like Kirby Air Riders and Metroid Prime 4: Beyond are expected to sustain interest through the holiday season.
Advertising spending rose to ¥64.6 billion in the latest quarter, an 80% increase, as Nintendo worked to keep the console prominent in the market.
Experts expect the company to maintain its upward trajectory during the gift-giving season, when hardware sales traditionally peak.
Holiday season to test Nintendo’s momentum
While the initial success of the Switch 2 has exceeded expectations, sustaining that pace will depend on global consumer spending trends and supply chain stability.
With manufacturing scaled up and strong software releases planned, Nintendo enters the critical holiday period with confidence.
The company’s early results underline its ability to blend nostalgia with innovation—a balance that has historically defined its strongest years.
As the fiscal year progresses, all eyes will be on whether the Switch 2 can maintain its exceptional start and become Nintendo’s next enduring platform success.
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