Nintendo's Switch 2 console sales just dropped significantly

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Nintendo's Switch 2 sales fell 34.4 percent from the same quarter last year to 3.82 million units, though the company isn't concerned about the drop just yet. "Although Switch 2 sales volume declined... many consumers continued to adopt the system, encouraged by the release of new titles and other factors," Nintendo wrote in its earnings presentation. Sales of the console are now at 23.68 million, outpacing the original Switch. 

The drop in sales comes ahead of an expected Switch 2 price hike in the US on September 1, 2026, when it will rise from $450 to $500. That could further cut into sales, though Nintendo is maintaining its current Switch 2 forecast of 16.5 million units for fiscal 2027 ending in March next year. Last year, the company smashed its previous console record by selling 19.86 million Switch 2 units.

Despite the console sales drop, Nintendo beat revenue expectations with strong game sales and, yes, Trump tariff refunds amounting to about $300 million. Switch 2 software rose year-on-year, led by Tomodachi Life: Living the Dream which shipped 7.96 million copies in its first three months on shelves. Other strong sellers included Pokémon Pokopia (1.27 million copies outside of Japan), Mario Kart World and Donkey Kong Bonanza. 

Two clouds on the horizon are further tariffs and memory costs. "An impact of approximately 100.0 billion yen ($633 million) due to rising component prices, particularly for memory, and tariff measures has been factored into cost of sales," the company wrote. However, spin-off content has been a big plus, with Nintendo saying that The Super Mario Galaxy Movie has now grossed over $1 billion globally since its April 1st release, the second most ever for a game-based film, only beaten by the first Mario movie.