Core Viewpoint - The launch of Nintendo Switch 2 has exceeded expectations, achieving 6 million units sold within the first 7 weeks, marking the highest sales for any Nintendo console in history [2][4]. Sales Performance - As of the end of June, the sales target for the fiscal year 2025 (ending March 2026) is set at 15 million units, with a current achievement rate of 40% [4]. - In Japan, approximately 1 month post-launch, Switch 2 sold 1.53 million units, surpassing previous records for console sales since 1996 [5]. Financial Performance - For the fiscal quarter of April to June, Nintendo reported a net profit increase of 19% year-on-year, reaching 96 billion yen [2]. - The operating income for the same period was 572.3 billion yen, a 2.3-fold increase, with operating profit growing by 4% to 56.9 billion yen [2]. Profitability Outlook - Nintendo maintains its fiscal year 2025 performance forecast, expecting a 63% increase in operating revenue to 1.9 trillion yen, a 13% increase in operating profit to 320 billion yen, and an 8% increase in net profit to 300 billion yen [6]. - The profit contribution from Switch 2 is anticipated to be lower compared to game software, with a focus on increasing profitability through software sales in the future [6]. Market Challenges - The potential impact of U.S. tariffs poses a risk, as over 40% of Nintendo's revenue comes from the U.S. market [6]. - Price adjustments for some peripherals have already occurred, raising concerns about the impact on overall revenue, while the console price remains unchanged for now [7]. Strategic Focus - Maintaining momentum and driving sales during the year-end shopping season is identified as a critical challenge for Nintendo [8]. - The company aims to leverage the popularity of Switch 2 to boost long-term revenue through software sales, which is essential for sustaining growth [8].