Nintendo Scores Big as Switch 2 Sales Explode, Revenue Doubles

Nintendo just dropped a monster earnings report — and the Switch 2 is the star of the show.

The gaming giant more than doubled its revenue last quarter, raking in a whopping ¥572.3 billion (around $3.8 billion) between April and June — that’s a 132% jump year-over-year. The reason? The Switch 2, which has already sold 5.82 million units in less than a month on shelves.

Launched on June 5, the Switch 2 has become one of the fastest-selling consoles in history, outpacing the original Switch’s debut numbers more than twofold. Lines snaked around stores from Tokyo to New York, and online preorders vanished in minutes.

Despite the strong launch, Nintendo’s not getting ahead of itself. The company is keeping its full-year sales forecast at 15 million units, though analysts say that target might be a bit too cautious. Many believe the console will blow past that figure if the current momentum holds.

Nintendo admitted demand is outstripping supply in many countries and promised to ramp up production to catch up.

“We regret the inconvenience this is causing our consumers,” the company said in its Q1 earnings note.

Meanwhile, fans are still buying the original Switch, which is now just shy of becoming Nintendo’s best-selling console ever, with 153.1 million lifetime units sold — just behind the DS’s all-time record of 154.02 million.

Revenue Up, But Caution Ahead:

• Operating profit came in at ¥56.9 billion, topping analyst expectations.
• Sales from Nintendo’s gaming platform business surged 5% year-over-year thanks to the Switch 2’s higher price tag.
• But not everything’s up: revenue from IP-related content (like The Super Mario Bros. Movie) dipped 4%.

And yes, there’s a cloud on the horizon — US tariffs. A new 20% tariff on goods from Vietnam, where Nintendo makes the Switch 2, goes into effect next week. But the company says it doesn’t expect a big dent in earnings — at least not this fiscal year.

“While there have been changes in the market environment… at this time there is no significant impact on our earnings forecast,” Nintendo said Friday.

Still, some analysts are wary. Morningstar’s Kazunori Ito predicts short-term hits to profitability from the tariffs but expects Nintendo to bounce back by selling more games to an even bigger audience.

With shares up 40% year-to-date, investors are clearly betting Nintendo’s second act with the Switch 2 will be just as epic — maybe even more so — than the first.

CNBC and the Verge contributed to this report.