Nintendo Profit Rises on Software Sales, New 'Mario' Movie — Update

By Kosaku Narioka

Nintendo's first-half profit rose on stronger software sales and the success of the latest "Super Mario" movie, demonstrating its capacity to grow earnings despite lower sales of the now year-old Switch 2 console.

The Japanese videogame maker said Thursday that software sales climbed for the six months through September thanks to hits like shooter game "Splatoon Raiders," released in July.

"The Super Mario Galaxy Movie," its second animated film based on the popular videogame series, also proved a big success since its global release in April, helping intellectual property-related income jump 88%.

However, sales momentum for the Switch 2 console weakened from a high base a year ago. Nintendo sold 6.5 million units of the device in its first half, down from 10.4 million units in the year-earlier period.

The results paint a mixed picture for the Kyoto-based company, which has sought to diversify its revenue streams beyond gaming. It has expanded into movies, theme parks and other forms of entertainment, leveraging its popular characters and game titles to capture a wider audience.

A live-action film based on its popular game series "The Legend of Zelda" is scheduled for release in 2027. Nintendo also recently signed a licensing partnership with Hasbro, allowing the U.S. company to create toys based on characters in the Zelda series.

Still, shares have dropped 16% this year and are off nearly 40% from their peak in August 2025, when the new console launch buoyed sentiment.

The stock has been weighed by worries about consumers spending more time with AI tools rather than playing videogames. Concerns about the memory-chip crunch and the ensuing soaring costs have also dragged the stock in recent months.

Nintendo earlier this year raised Switch 2 console prices in Japan, the U.S. and some other regions, citing "changes in market conditions." The device now costs about $500 in the U.S., compared with about $450 previously.

The Japanese videogame maker began selling the Switch 2 console in June last year, aiming to build on the success of its predecessor, whose popularity was amplified by a pandemic-driven videogame boom.

That has been challenging, partly because of the product-price increase.

Nintendo's first-half net profit rose 11% from a year earlier to 220.92 billion yen, equivalent to $1.39 billion, missing the estimate of Y224.6 billion in a poll of analysts by data provider Visible Alpha. Revenue dropped 12% to Y966.04 billion.

The game maker continues to expect to sell 16.5 million Switch 2 consoles this fiscal year, and reiterated projections for annual revenue of Y2.050 trillion and net profit of Y310.00 billion, down 11% and 27%, respectively.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

November 05, 2026 08:16 ET (13:16 GMT)