Nintendo keeps its full-year sales guidance as Switch 2 momentum continues

Core Viewpoint - Nintendo's Switch 2 launch has generated significant consumer interest, but the company faces challenges in sustaining momentum and managing costs [1][4]. Financial Performance - For the fiscal third quarter ended December 31, Nintendo reported revenue of 806.32 billion Japanese yen ($5.2 billion), which was below the expected 847.73 billion yen [6]. - The net profit for the same period was 159.93 billion yen, exceeding the expected 147.3 billion yen [6]. Sales Forecast - Nintendo maintained its sales forecast for the Switch 2 at 19 million units for the fiscal year ending March 2026, an increase from the previous forecast of 15 million units [2]. Stock Performance - Following the Switch 2 launch in June, Nintendo's share price reached a record high above 14,000 yen in August, but has since declined by more than 30% [3]. Market Challenges - Investors are concerned about potential headwinds, including rising memory prices, which are crucial for console production, and the adequacy of Nintendo's game pipeline to support the Switch 2 [4].