Refunds "were primarily borne by the company rather than passed on to consumers through product prices"

Nintendo reported a 9.5% decrease in first-quarter net sales, but operating profit rose 150.5% due to higher software revenue and $300 million in US tariff refunds.

The platform holder clarified that the tariff refunds "were primarily borne by the company rather than passed on to consumers through product prices."

Recently, Nintendo moved to dismiss a class action lawsuit alleging it did not pass these refunds to consumers.

Lawyers representing Nintendo clarified that the firm "imposed modest and selective price adjustments, and it chose to bear the costs of tariffs on some of its most popular products of 2025, including its flagship console, the Switch 2."

Nintendo's dedicated video platform sales fell 13.3% to ¥483 billion ($3 billion), primarily due to lower hardware sales.

However, digital sales rose 90% to ¥132.7 billion ($840 million), driven by higher sales of downloadable packaged software.

Despite maintaining a "strong sales momentum," Switch 2 unit sales totalled 3.82 million, a 34.4% decrease from 5.82 million in the same period last year.

Nintendo noted that despite this decline, "many consumers continued to adopt the system, encouraged by the release of new titles and other factors."

First quarter sell-in of the console surpassed that of the original Switch in its second year, reaching 23.68 million total units shipped to date.

"For a hardware system in its second year, sales compare favourably to the adoption trajectory of Nintendo Switch. In the Japanese market, where a price revision took effect on May 25, hardware sell-through has also remained solid," the firm added.

Source link