Nintendo released its second-quarter earnings report today, and it’s a fairly mixed bag. Despite strong software sales and an 87.9 percent increase in “IP related income,” hardware sales of both the Nintendo Switch and the Nintendo Switch 2 are down 37.4 percent and 32.7 percent, respectively.
Nintendo’s total “unit sales of software” saw a healthy increase in Q1-Q2 2027, with Switch 2 software sales up 18.8 percent on 2025 and Switch software sales up 6.8 percent. There are some surprise hits on the software front, with Tomodachi Life: Living the Dream shipping an enormous 8.81 million units and Rhythm Heaven Groove hitting 2.89 million units across the six-month period.
However, Nintendo’s report states that “the continued weakness of the yen” has led to overall sales in its “dedicated video game platform business” declining by 15.3 percent year-on-year. Likewise, both Bloomberg and Reuters note that Nintendo’s operating profit fell by 16 percent in its second fiscal quarter, although this was a figure Nintendo had been expecting.
Although Bloomberg’s report states that Nintendo’s “bigger-than-expected 15 percent decline in sales” is a cause for concern, with Morningstar’s equity analyst saying that it is proof that “investors have cooled on the Switch 2 platform,” the company’s shares remain steadfast. In fact, as of writing, Nintendo Co Ltd’s share price is up 6.3 percent following its quarterly earnings report.
1 percent in FY2027 Q1-Q2 versus the year before. S.
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