Nintendo H1 operating profit rises 49.1% supported by new titles including Splatoon Raiders
Nintendo has reported a significant increase in operating profit for the first half of the fiscal year, reaching ¥216.5 billion ($1.3 billion), a 49.1% rise compared to the previous period. This growth was largely fueled by steady software sales from recent hits like Splatoon Raiders, even as the company faced a decline in overall net sales due to falling hardware unit sales.
The company's net sales for the six months ending September 30, 2026, dropped by 12.1% to ¥966 billion ($6.1 billion). This downturn was primarily driven by a reduction in hardware sales across its platforms. Interestingly, the operating profit surge was also aided by a first-quarter US tariff refund, which Nintendo noted was largely absorbed by the company itself rather than being passed on to consumers through higher product prices.
Hardware and Software Performance
The transition between hardware generations shows a clear shift in consumer behavior. Switch 2 hardware sales saw a 37.4% decrease, falling to 6.49 million units compared to 10.36 million in the previous year. Meanwhile, original Switch sales dropped by 32.7% to 1.27 million units, with the OLED model leading the decline at 63,000 units, followed by the OG Switch at 35,000 and the Lite at 29,000.
However, the software segment remains a powerhouse for the company. Switch 2 software sales rose 18.8% to 24.49 million units, bolstered by successful releases such as Splatoon Raiders (2.42 million units in July), Star Fox (1.17 million in June), and Fire Emblem: Fortune's Weave (1.34 million in September). For the original Switch, software sales grew by 6.8% to 65.73 million units, led by Tomodachi Life: Living the Dream (8.81 million) and Rhythm Heaven Groove (2.89 million). Digital sales now account for 60.7% of total software revenue, totaling ¥249.6 billion ($1.5 billion).
Future Outlook
Looking ahead, Nintendo aims to expand the Switch 2 installed base by leveraging its existing software lineup and introducing new titles. The company has confirmed several major releases for the upcoming period in January 2027, including Nintendo Switch Sports Resort, The Legend of Zelda: Ocarina of Time remake, and Metroid Ravenous.
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