Japan’s Nintendo said on Tuesday it has maintained its forecast for annual operating profit at 370 billion yen ($2.4 billion), up nearly one-third from the previous financial year.
The Kyoto-based company, best known for the Super Mario franchise, launched its Switch 2 gaming console in mid-2025 and reported strong early sales. However, investors remain divided over whether that momentum can be sustained.
Nintendo also reaffirmed its annual sales forecast of 19 million units for the Switch 2.
The console follows the hugely successful original Switch, but Nintendo has had to navigate supply-chain disruptions linked to U.S. President Donald Trump’s trade war. Hardware makers are also facing sharply rising memory chip prices as investment in artificial intelligence accelerates.
Despite these pressures, analysts say Nintendo is better positioned than many of its peers. “Its sizable inventories and long-term contracts should provide a buffer for several quarters,” Jefferies analyst Atul Goyal wrote in a note ahead of the earnings release.
In the United States, the Switch 2 is priced at $449.99, significantly higher than the Japanese-language version sold domestically for 49,980 yen ($320). The higher U.S. price reflects the current inflationary environment.
“It would be more difficult for Nintendo to raise prices than for Sony, as the Switch 2 is not positioned as a high-end product,” said Serkan Toto, founder of Kantan Games.
Goldman Sachs analyst Minami Munakata said concerns about the profitability of the Switch 2 were overstated, noting that Nintendo has a long-standing policy of not selling hardware at a loss.
Some investors have also voiced concerns about the current lack of blockbuster titles, such as entries in The Legend of Zelda series, which were key drivers of sales for the original Switch.
Nintendo is aiming to sustain momentum with upcoming releases, including Mario Tennis Fever, scheduled to launch next week.