adminNintendo Q1 sales declined 9.5% year over year, but operating profit increased sharply as software revenue grew and the company received $300 million in US tariff refunds. The results for the three months ending June 30, 2026, show how stronger software sales and lower hardware sales contributed to different trends across the business.
Image credit: Nintendo
Nintendo Q1 sales and financial results
Nintendo said the tariff refunds were primarily absorbed by the company instead of being passed on to consumers through product prices. The company recently moved to dismiss a class action lawsuit alleging that it did not pass the refunds on to customers. In its legal response, Nintendo said it made modest, selective price adjustments and bore tariff costs on some popular 2025 products, including the Switch 2.
Here are the reported results for the quarter:
- Net sales: ¥517.8 billion ($3.2 billion), down 9.5%.
- Operating profit: ¥142.5 billion ($902.7 million), up 150.5%.
- Ordinary profit: ¥206.1 billion ($1.3 billion), up 115.1%.
- Net profit: ¥147.4 billion ($925 million), up 53.3%.
When comparing these figures, keep revenue and profit separate: sales fell, while operating profit rose. The tariff refunds and higher software revenue contributed to that contrast.
Hardware sales and Switch 2 shipments
Sales from Nintendo’s dedicated video game platform business decreased 13.3% to ¥483 billion ($3 billion), mainly because of lower hardware sales. Switch 2 sales were 3.82 million units, 34.4% below the 5.82 million recorded in the comparable period last year. Nintendo said consumers continued adopting the system, supported by new game releases and other factors.
First-quarter sell-in for Switch 2 exceeded the original Switch’s sales in its second year. Cumulative Switch 2 shipments reached 23.68 million units. Nintendo also described the console’s second-year adoption trajectory as favourable compared with the original Switch. In Japan, hardware sell-through remained solid following a price revision that took effect on May 25.
Original Switch hardware sales were 0.66 million units, down 31.8% from 0.98 million in Q1 2025. For a clearer comparison, check hardware unit sales alongside shipments and sell-through: these measures describe different points in the sales process.
Software and digital sales provide a boost
Digital sales climbed 90% to ¥132.7 billion ($840 million), driven by increased sales of downloadable packaged software. Switch 2 software sales reached 9.46 million units, a year-on-year rise of 9.2%. Nintendo said Yoshi and the Mysterious Book and Star Fox performed steadily, while Pokémon Pokopia had sold nearly four million units since its March release.
Software for the original Switch also gained ground. Sales rose 38.6% to 33.81 million units, with Tomodachi Life: Living the Dream selling 7.94 million units since its April launch. Nintendo added that games released in earlier fiscal years continued to sell steadily, noting that Switch titles can also be played on Switch 2.
Other business highlights
Nintendo’s intellectual property segment generated ¥34.8 billion ($220 million) in sales, up 107.4% year over year. The company attributed the increase to strong audience engagement with The Super Mario Galaxy Movie, which had passed $1 billion at the global box office.
What Nintendo Q1 sales show
Nintendo Q1 sales reflect a mixed quarter: overall net sales and hardware figures declined, while operating profit, digital sales and software unit sales increased. Looking at the same-period comparisons across these categories gives a more complete picture than relying on any single figure. The results also show the importance of software and other business segments alongside console sales.
