Nintendo said operating profit for the quarter to September fell 16% YoY to
¥73.9 bln (~$468m), below analyst consensus of ¥88.1 bln, while revenue dropped
15% YoY, missing expectations. Switch 2 hardware sales in the six months to
September were 6.49 mln units, down 37% YoY. The company cited a shortage of
major new game releases and higher Switch 2 component costs—driven in part by
demand linked to the AI hardware cycle—which prompted a hardware price increase.
Management flagged cautious consumer spending on new titles and expects a
challenging year-end holiday season; the Nov. 19 launch of Grand Theft Auto VI
could divert global entertainment spend.
