Nintendo $NTDOY ( ▼ 6.83% ) just delivered a classic mixed earnings report, but one number stole the spotlight. The company sold about 7 million Switch 2 consoles in the December quarter, topping expectations and cementing the device as the fastest-selling dedicated gaming platform in Nintendo’s history.
At the same time, the original Switch quietly crossed a historic milestone, becoming the bestselling console Nintendo has ever made.
Switch 2 Is Speedrunning Records
Switch 2 sales reached 7 million units for the quarter, beating analyst estimates of 6.5 million and pushing cumulative sales past 17 million. Nintendo says that makes it the fastest-selling dedicated video game platform in company history.
That kind of momentum is rare in the hardware world, where console cycles usually slow down after launch hype fades. Instead, Switch 2 demand is still humming, even as macro pressures weigh on consumers.
Meanwhile, the original Switch hit 155.4 million units sold since its 2017 launch, officially surpassing the Nintendo DS, which ended its run at 154 million units. A handheld-console hybrid has now become the king of Nintendo’s hardware legacy.
Financials Were Good… Not Great
Revenue for the quarter came in at 806.3 billion yen, slightly below expectations of 815.7 billion yen. Operating income also missed, landing at 155 billion yen versus estimates closer to 181 billion yen.
Even so, Nintendo $NTDOY kept its full-year outlook intact, including its forecast of 19 million Switch 2 units sold for the fiscal year ending March 2026. That signals management is confident strong console demand can offset some near-term margin pressure.
Chips, Tariffs, and the AI Squeeze
Nintendo’s stock has pulled back about 35% from its post–Switch 2 launch highs last summer. Profitability has been squeezed by tariffs and rising memory chip costs, as suppliers prioritize higher-margin AI data center demand over consumer electronics.
President Shuntaro Furukawa said higher chip prices should not have a major impact in the near term, but warned that a prolonged surge could pressure earnings. In other words, even Mario is not immune to the AI hardware boom reshaping global supply chains.