TOKYO, Japan: Nintendo reported a pointy rise in annual revenue on Friday as sturdy demand for its Switch 2 console and fashionable sport titles boosted gross sales, although the Japanese gaming big warned income are anticipated to say no within the coming yr.
The firm additionally introduced worth will increase for its Switch 2 gaming system in Japan and the United States, citing altering market circumstances and a difficult international enterprise surroundings.
Nintendo posted a internet revenue of 424 billion yen ($2.7 billion) for the fiscal yr ended March, up 52% from almost 279 billion yen a yr earlier.
Annual gross sales jumped 99% to 2.3 trillion yen ($15 billion), pushed largely by continued demand for the Switch 2 console and associated software program, at the same time as gross sales of the unique Switch weakened.
The Kyoto-based firm stated the worth of the Switch 2 in Japan will rise to 59,980 yen ($382) from 49,980 yen ($318) beginning May 25.
In the United States, the console’s worth will improve to $499.99 in September from $449.99.
Nintendo didn’t present detailed causes for the will increase, however Japanese exporters have been going through rising prices linked to U.S. President Donald Trump’s tariffs and financial disruption tied to the Iran battle.
Despite the sturdy outcomes, Nintendo forecast an 11% drop in revenue for the fiscal yr ending March 2027, projecting earnings of two.1 trillion yen ($13 billion). The outlook contains the anticipated impression of the deliberate worth hikes.
The firm stated it expects to promote 16.5 million Switch 2 consoles in the course of the present fiscal yr, down almost 17% from 19.86 million models bought within the earlier yr.
However, software program gross sales are anticipated to continue to grow. Nintendo forecast gross sales of 60 million Switch 2 sport titles this fiscal yr, up 23% from 48.7 million beforehand.
Among the corporate’s latest profitable titles are Mario Kart World and Donkey Kong Bananza.
Nintendo additionally stated Tomodachi Life: Living the Dream has bought greater than 3.8 million copies since its launch two weeks in the past.
Meanwhile, the corporate’s movie The Super Mario Galaxy Movie has generated greater than $800 million globally since debuting final month.
Nintendo stated extra sport titles are deliberate for launch on the Switch 2 this yr, together with the most recent installment of Final Fantasy.
Nintendo shares rose 3.6% following the earnings announcement.