Switch 2 sales fell 34% but Nintendo profit jumped 150%.

Transcript

Nintendo just reported its June quarter, and the two headline numbers look like they cancel each other out. Switch 2 shipments fell thirty four percent, down to three point eight two million consoles. Operating profit rose a hundred and fifty percent, to a hundred and forty two point six billion yen. Both are true. The drop is arithmetic, because last year's June quarter was the console's launch window. The profit is the real story. Software did the work. Nine point four six million Switch 2 games sold, up nine percent, and software carries far better margin than hardware. Add a three hundred million dollar refund on US tariffs, and a shrinking top line turned into a doubled bottom line. Nintendo kept its full year forecast flat anyway, even after beating analyst estimates by more than double. Watch November. That is the first quarter with no tariff cushion.