Nintendo sold 3.82 million Switch 2 consoles in the quarter ending June 2026, a 34.4% drop from the same period a year earlier, according to the company's latest financial disclosure Engadget. Despite the drop, total Switch 2 sales have reached 23.68 million units, which is ahead of where the original Switch was at the same point in its life. Nintendo said it is not worried about the decline, pointing to continued consumer interest driven by new game releases.

The company kept its full-year sales forecast of 16.5 million Switch 2 units for the fiscal year ending March 2027. That target follows a record-setting prior year in which Nintendo sold 19.86 million Switch 2 units — the most any Nintendo console has sold in its first year. The original Switch, now being phased out, declined 64.8% year-on-year to 3.80 million units in the fiscal year ended March 2026 Nintendo IR.

Nintendo beat revenue expectations for the quarter, helped by strong game sales and about $300 million in tariff refunds. Operating profit reached 56.9 billion yen ($378 million) in the April–June 2025 quarter, a 4% year-on-year increase that exceeded what analysts had predicted Reuters. However, Nintendo also absorbed roughly 100.0 billion yen ($633 million) in extra costs due to rising prices for components, especially memory chips, and tariff measures Nintendo IR.

Game sales were the bright spot. Switch 2 software sales rose year-on-year, led by Tomodachi Life: Living the Dream, which sold 7.96 million copies in its first three months. Pokémon Pokopia sold 1.27 million units outside Japan. Mario Kart World and Donkey Kong Bonanza continued to sell steadily. Total Switch 2 game sales now stand at 58.17 million units across 23.68 million consoles Nintendo IR. For context, Nintendo reported 12.60 million Switch 2 game sales in the prior quarter, with about 0.51 million bundled with hardware Nintendo IR.

Beyond gaming, the Super Mario Galaxy Movie has grossed over $1 billion globally since its April 1 release, making it the second-highest-grossing movie based on a video game ever, behind only the first Mario movie.

The biggest factor ahead for Switch 2 is price. Nintendo of America will raise the Switch 2's price from $449.99 to $499.99 on September 1, 2026 Nintendo of America. The increase applies globally: European pricing rises from €469.99 BBC. Nintendo's shares fell 7% in Tokyo in May after announcing the hike, as investors reacted to what they saw as a gap in the release schedule for big new titles Reuters.

A 34.4% year-on-year sales decline in a console's second year is not unusual on its own. The original Switch also saw its quarterly sales go up and down as the initial launch excitement settled. What makes this quarter worth watching is the combination of falling sales with a coming 11% price increase in Nintendo's largest market. Nintendo is effectively asking consumers to pay more for a console whose sales are already declining, while holding to an annual target of 16.5 million units — well below the 19.86 million sold in the launch year.

The ratio of games sold to consoles sold offers a partial counterweight. At 58.17 million games across 23.68 million consoles, that works out to about 2.46 games per console, which is a healthy number for this early in the product's life. Tomodachi Life: Living the Dream selling nearly 8 million copies in its first quarter reinforces that Nintendo's own games remain the main reason people buy the console and the main source of profit. The $300 million in tariff refunds that padded this quarter's revenue, however, will not happen again.

The $633 million cost increase from rising memory chip prices and tariffs is the pressure most likely to grow over time. Nintendo does not control the price of the memory chips it buys, and the tariff situation remains unsettled. The September price hike is a direct response to those rising costs, but it also tests how much more consumers are willing to pay at a moment when sales are already trending down. Nintendo's decision to keep its forecast unchanged signals confidence that the holiday quarter, typically the strongest, will absorb the impact. Whether that confidence holds up will become clear by the next earnings report.