SWFL.io - Local NewsTOKYO (AP) — Nintendo’s annual profit surged 52% in the last fiscal year, lifted by solid sales of its Switch 2 machines and software.
The Japanese video-game company behind the Super Mario and Pokemon franchises announced it was raising prices, citing challenging business conditions.
It recorded a 424 billion yen ($2.7 billion) net profit for the fiscal year that ended in March, up from nearly 279 billion yen the year before.
Annual sales rose 99% to 2.3 trillion yen ($15 billion) from 1.2 trillion yen a year earlier, as demand for Switch 2 held up, although sales for the first-generation Switch declined.
Nintendo said it was raising the Switch 2 price in Japan to 59,980 yen ($382), effective May 25, from 49,980 yen ($318), “in light of changes in market conditions, and after considering the global business outlook.”
In the U.S., the price will rise to $499.99 in September, from $449.99.
Nintendo, which is based in the ancient Japanese capital of Kyoto, did not go into details. But all major Japanese exporters are having to cope with U.S. President Donald Trump’s tariff hikes and other higher costs that have been worsened by the war in Iran.
Nintendo Co., which did not break down quarterly results, expects an 11% decline in profit for the fiscal year through March 2027, to 2.1 trillion yen ($13 billion). The projection takes into account the planned price hikes.
On the plus side, Nintendo’s film “The Super Mario Galaxy Movie” has grossed more than $800 million since its release a month ago.
Among its recent successful game software offerings were “Mario Kart World” and “Donkey Kong Bananza.”
The game “Tomodachi Life: Living the Dream” has sold more than 3.8 million units since going on sale two weeks ago.
Nintendo expects to sell 16.5 million Switch 2 machines in the fiscal year through March 2027, down nearly 17% from 19.86 million in the last fiscal year. It also forecast that Switch 2 software sales will continue to grow, at 60 million, up 23% from 48.7.
It’s common for game machines to sell briskly right after they are launched and then see sales decline. Game software tends to continue growing. The Switch is a hybrid game machine, functioning both as a home console connected to a display, or as a portable handheld.
Nintendo promised more software titles for the Switch 2 this year, including from other creators, including the latest “Final Fantasy.”
Nintendo’s stock price jumped 3.6% after earnings were announced.
Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama