Nintendo(US:NTDOY) Sou Hu Cai Jing·2025-08-01 08:56Core Insights - Nintendo reported a significant increase in sales and net profit for the first quarter ending June 30, 2025, with net sales reaching 572.36 billion yen (approximately 27.23 billion RMB), a 132.1% increase from 246.64 billion yen (approximately 11.72 billion RMB) in the same period last year [1] - The strong performance is attributed to the launch of the Switch 2, which sold over 3 million units within 24 hours of its release, setting a new record for game console sales [1] - The total sales of Switch 2 reached 5.82 million units by the end of the first quarter, while sales of the original Switch declined by 53.5% to 980,000 units [1] Sales Performance - Switch 2 software sales reached 8.67 million units, largely driven by the bundled package with "Mario Kart World," contributing to a 142.5% year-on-year increase in Nintendo's dedicated game business sales, totaling 555.5 billion yen (approximately 26.44 billion RMB) [1] - Regional sales data indicates that the highest sales of Switch 2 were in the Americas at approximately 1.8 million units, followed by Japan with 1.47 million units, Europe with 1.18 million units, and other regions totaling 550,000 units [2] Market Position and Challenges - According to market research firm Circana, Switch 2 achieved first-month sales of 1.6 million units in the U.S., surpassing the previous record held by Sony's PS4, which sold 1.1 million units [4] - In Japan, Switch 2's first-month sales exceeded 1.5 million units, breaking the previous record of 1.36 million units set by the Game Boy Advance [4] - Despite the strong start, the global game console market is expected to become increasingly competitive, with rivals like Sony and Microsoft continuously launching new products and services [4] - Rising game development costs pose a challenge for Nintendo, necessitating the continuous release of high-quality, popular games to maintain player engagement and console sales [4] - Economic uncertainties may also impact consumer purchasing intentions [4] Future Outlook - Nintendo's president, Shuntaro Furukawa, addressed concerns regarding the high pricing of Switch 2, stating that the pricing aligns with the gaming experience offered [5] - For the fiscal year 2026, Nintendo has optimistic projections, expecting a 63.1% increase in revenue, with a sales target of 15 million units for Switch 2 and 45 million game sales [5] - The achievement of these targets will depend on future market performance [5]