Photo: Nintendo Switch 2 console in its dock / Crisco 1492, Wikimedia Commons / CC BY-SA 4.0
Sales of Nintendo’s flagship Switch 2 console fell 41% in the July-to-September quarter after the company raised prices in the face of soaring memory-chip costs, even as profits climbed.
Nintendo sold 2.67 million Switch 2 units in the three months ended Sept. 30, down 41% from a year earlier and below the 3.82 million sold in the prior quarter, CNBC reported. During the quarter, Nintendo raised the console’s price in the U.S., Canada and Japan, after an earlier increase in Japan.
The hardware slump did not translate into a profit drop. For the six months through September, Nintendo sold 6.49 million hardware units, with revenue of 966.0 billion yen, down 12.1%, while operating profit rose 49.1% to 216.5 billion yen and net profit climbed 11% to 220.9 billion yen, according to the company’s results. Nintendo left its annual forecast unchanged.
The numbers tell a two-sided story: pricier hardware is selling fewer units, but the company is making more money on what it sells. Memory costs have been rising across the electronics industry as data centers soak up chip supply, pressuring console makers’ margins.
JBizNews Desk | New York
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