Nintendo posted a 29 per cent drop in second-quarter net profit to 73.5 billion yen, missing market forecasts as unit sales for its Switch 2 console slowed.

The Japanese gaming company fell short of the 82.2 billion yen average estimate compiled by Bloomberg for the July-September period.

First-half net profit still climbed 11 per cent year-on-year, supported by earlier momentum and software purchases. Operating profit jumped nearly 50 per cent across the six months, aided by steady software transactions and a windfall from US tariff refunds.

Consumer demand for hardware pulled back sharply across global channels. Nintendo sold nearly 6.5 million Switch 2 consoles during the six months, down from almost 10.4 million units in the comparative period a year earlier when the hardware debuted.

Component costs hit margins across electronics supply chains this year. Higher prices for memory chips, driven by enterprise demand for artificial intelligence hardware, forced Nintendo to raise the retail price of the Switch 2 console.

Retail buyers now face a more cautious consumer base. Without an immediate pipeline of top-tier first-party games through the summer, store shelves saw console inventory move at a noticeably slower pace than during the record-breaking 2025 launch cycle.

The consumer electronics divide widened between Japan’s two premier entertainment hardware makers this quarter. Sony upgraded its full-year earnings outlook to 1.33 trillion yen, powered by games, theatrical releases and music distribution.

6 billion yen. While Sony benefited from favourable foreign exchange rates and box office contributions from titles like Spider-Man: Brand New Day, Nintendo remained exposed to single-platform hardware dependency.

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