Core Insights - Nintendo's Switch 2 has achieved significant sales success, with total sales reaching 5.82 million units as of the latest update [2] - The company reported a remarkable revenue increase of 132% year-over-year, totaling 572.3 billion Japanese yen ($3.8 billion) for the fiscal first quarter [5] - Nintendo's operating profit for the same quarter was 56.9 billion yen, exceeding expectations [5] Sales Performance - The Switch 2 sold over 3.5 million units within its first four days of launch [3] - Nintendo anticipates reaching 15 million unit sales for the Switch 2 by the end of the fiscal year in March 2026 [3] Market Reaction - Nintendo's shares have surged approximately 40% this year, driven by the excitement surrounding the Switch 2 [2]

Core Insights - Nintendo's operating profit for the first quarter reached 56.93 billion yen, a year-on-year increase of 4.4%, surpassing the forecast of 54.77 billion yen [1] - The net profit for the first quarter was 96.03 billion yen, reflecting a 19% year-on-year growth, exceeding the expected 58.07 billion yen [1] - Sales revenue for the first quarter amounted to 572.36 billion yen, significantly up from 246.64 billion yen in the same period last year, and above the forecast of 489.75 billion yen [1] Financial Forecasts - Nintendo maintains its forecast for the fiscal year 2026, projecting an operating profit of 320.00 billion yen, while the market expectation is 402.94 billion yen [1] - The company also forecasts a net profit of 300.00 billion yen for fiscal year 2026, compared to the market estimate of 358.62 billion yen [1] - Sales revenue for fiscal year 2026 is projected at 1.90 trillion yen, lower than the market forecast of 2.14 trillion yen [1] - Nintendo anticipates a dividend of 129.00 yen for fiscal year 2026, while the market expectation is 155.54 yen [1]

任天堂第一财季集团净利润960.3亿日元，增长18.6%，2025/26财年预测利润3000亿日元，增长7.6%。 ...

任天堂：第一季度Switch 2软件销量达867万份。 ...

Core Insights - SalesNow published a ranking of Japanese game companies based on average annual employee income, with Nintendo ranking third among game developers [1][3] - Square Enix did not make it into the top twenty of the ranking [1] Ranking Details - The ranking period is from June 2024 to June 2025, utilizing data from SalesNow DB, which covers approximately 5.4 million companies [3] - The top five companies in the ranking are: 1. Sony Group: 11.13 million JPY (approximately 538,000 RMB) 2. Bandai Namco Holdings: 10.95 million JPY (approximately 531,000 RMB) 3. Nintendo: 9.63 million JPY (approximately 467,000 RMB) 4. Sega Sammy Holdings: 8.79 million JPY (approximately 424,000 RMB) 5. Akatsuki: 8.56 million JPY (approximately 409,000 RMB) [4] - The ranking continues with notable companies such as DeNA, Capcom, and Nexon, with incomes ranging from 7.29 million JPY to 6.23 million JPY [4][5]

Core Viewpoint - Investors are concerned about the sales trajectory of Nintendo's Switch 2 console, especially as it is no longer selling out at retail, despite a strong initial performance [1][3][4]. Group 1: Stock Performance - Nintendo's stock experienced a modest pullback, down 1.9% as of 3:30 p.m. ET, with a maximum decline of 2.8% during the session [1]. - Despite recent sell-offs, Nintendo's stock is still up approximately 49% in 2025 [1]. Group 2: Switch 2 Console Performance - The Switch 2 console launched on June 5 and became the fastest-selling console in U.S. history, moving over 1.6 million units in its first month [3]. - Initially, the console was selling out quickly after restocks, but it has become easier to find on store shelves recently [3][4]. Group 3: Future Sales Outlook - Early sales data for key software titles, such as Mario Kart World, has been encouraging, indicating a strong start for the Switch 2 [4]. - The initial explosive launch performance does not guarantee that the Switch 2 will match the sales longevity of its predecessor, leading to uncertainty in predicting its future sales trajectory [5].

Core Viewpoint - Nintendo's Switch2 game console achieved record sales in the United States, selling 1.6 million units in June, surpassing the previous record held by Sony's PlayStation 4 in 2013, which sold 1.1 million units in its launch month [1] Group 1 - Nintendo sold 1.6 million units of the Switch2 in June [1] - This sales figure sets a new record for game console launches in the U.S. [1] - The previous record was held by Sony's PlayStation 4, which sold 1.1 million units [1]

Group 1 - Beijing's public transport association initially announced a ban on fuel vehicles for ride-hailing platforms, but later deleted the statement and issued an apology due to verification issues [2] - Zhengzhou's market regulation bureau held talks with major food delivery platforms, including Ele.me, Meituan, and JD, addressing compliance issues and emphasizing the need for fair competition [4] - Taobao Shanguo denied rumors about launching a "1 cent self-pickup" product and stated it has never set internal order targets [4] Group 2 - China Ruyi announced plans to acquire a 30% stake in Kuaiqian Financial for 240 million yuan [5] - JD plans to build 10,000 "Seven Fresh Kitchen" locations nationwide within three years, investing 10 billion yuan to recruit partners for signature dishes [5] - Meituan's "Pin Hao Fan" launched a "Ten Thousand Brands" initiative to support 10,000 well-known restaurant brands [7] Group 3 - Sanofi is set to acquire Vicebio for up to $1.6 billion, focusing on respiratory virus vaccine development [27] - Flexjet completed an $800 million equity financing round, led by L Catterton, to expand its private aviation services [27] - Turing Quantum raised a significant amount in a strategic round of financing to develop photonic chip products [27] Group 4 - Universal Music Group filed for a confidential IPO in the U.S., having previously listed in the Netherlands [25] - Amazon acquired AI wearable device maker Bee, which produces a $50 AI assistant wristband [25] - Tesla opened its first Supercharger diner in Los Angeles, featuring a futuristic design and robot staff [19]

Group 1 - Tencent's new MMO game "Star Resonance" officially launched on July 17, based on the IP "Blue Protocol" from Bandai Namco, which ceased operations earlier this year. This launch may inject new vitality into the domestic ACG (Anime, Comic, and Game) market and strengthen Tencent's competitive advantage in this segment [1] Group 2 - Nintendo's new game "Donkey Kong: Bananapocalypse" was released on July 17, receiving an average score of 91 from 87 media outlets on Metacritic, with IGN giving it a perfect score. As a Switch 2 exclusive, this high rating may enhance Nintendo's competitiveness in the console gaming market and boost confidence in the monetization potential of its IPs [2] Group 3 - Chuangmeng Tiandi's tactical shooting game "Kara Bichu" mobile version began a limited paid testing phase on July 17, lasting until July 26, exclusively for Android. The original PC version performed well in Japan, indicating potential for monetization in the mobile market. Positive test results could enhance market perception of the company's game development capabilities, particularly in the niche of ACG and tactical shooting [3]

Core Insights - The Roundhill Video Games ETF NERD is experiencing significant growth in 2025, primarily driven by the successful launch of Nintendo's Switch 2 console [1][2]. Nintendo - The Switch 2 launched at a price of $449, which is $150 higher than the original model, yet it achieved remarkable sales, with 3.5 million units sold in the first four days, marking the fastest start for any console in Nintendo's history [2][3]. - Nintendo's management is projecting to ship 15 million consoles in the current fiscal year, which is expected to increase revenue by over 60% and operating profit by around 13% [3]. - Nintendo is the largest holding in the Roundhill Video Games ETF, comprising 12.1% of its assets, with a focus on monetizing intellectual property beyond traditional game sales [4]. Electronic Arts (EA) - EA's sports titles, particularly Madden and College Football, are significant revenue drivers, with expectations of a college basketball franchise potentially generating $300 million in bookings [7][8]. - The return of a college basketball game could conservatively sell four million titles, enhancing gamer engagement during off-seasons [8]. GameStop - GameStop is excluded from the Roundhill Video Games ETF due to its focus on tracking the Nasdaq CTA Global Video Games Software Index, which does not include physical retailers [9]. - GameStop's financial performance, characterized by double-digit revenue declines and volatility disconnected from fundamentals, further disqualifies it from ETF inclusion [10]. ETF Performance - The Roundhill Video Games ETF closed at $25.94, reflecting a year-to-date increase of 31.3% in 2025 and a 57.7% rise over the past year [10].