Nintendo just posted a blockbuster fiscal year, but the party might be winding down. The gaming giant reported fiscal 2026 revenue of 2.31 trillion yen — nearly double the 1.16 trillion yen from a year earlier — and net profit jumped 52.1% to 424.0 billion yen. The star of the show was the Switch 2, which sold 19.86 million units in its first fiscal year. Meanwhile, the original Switch is fading fast, with sales dropping to 3.80 million units from 10.80 million.
Nintendo also got a boost from its entertainment empire. "The Super Mario Galaxy Movie" grossed nearly $900 million globally, and "Pokémon Pokopia" became one of the Switch 2's top-selling games. But the good times have a price tag — literally.
Starting this month, Nintendo is hiking Switch 2 prices around the world. In Japan, the console will cost 59,980 yen (up from 49,980 yen) as of May 25, 2026. In the U.S., the price jumps to $499.99 from $449.99 on September 1, and in Europe, it goes to 499.99 euros from 469.99 euros on the same date. Nintendo says the increases reflect higher memory and materials costs, tariffs, and elevated shipping expenses tied to the Iran conflict — which it estimates will create a 100 billion yen hit to its business.
The outlook for the coming year is sobering. Nintendo forecasts fiscal 2027 net sales of 2.05 trillion yen, down 11.4%, and net profit of 310.0 billion yen, a 26.9% decline. The company expects to sell 16.50 million Switch 2 units, down 16.9% from this year, and plans to cut its dividend to 162 yen from 219 yen.
Analysts are raising eyebrows. Hideki Yasuda of Toyo Research Institute told Bloomberg that Nintendo typically starts the fiscal year with conservative guidance, but described this forecast as "unusually weak." He added that while the price increases reflect broader macroeconomic pressures, weaker sales after the hikes could raise concerns about the Switch 2's long-term appeal. Serkan Toto, CEO of Kantan Games, told CNBC that Nintendo has been under pressure from the memory chip crunch for months and noted that console sales usually rise in the second year, not decline as Nintendo now projects.
Nintendo is betting that software sales will drive earnings growth as hardware production remains constrained by component shortages. But competition is heating up: the expected launch of Grand Theft Auto VI is likely to benefit Sony's PlayStation 5 platform more than the Switch 2.
Investors are voting with their feet. Nintendo shares (Nintendo (NTDOY)) were down 7.47% at $10.90 on Friday, hitting a new 52-week low.
