Nintendo Q1 sales drop 9.5%; operating profit soars following higher software sales and $300m in US tariff refunds

Nintendo Q1 sales drop 9.5%; operating profit soars following higher software sales and $300m in US tariff refunds Refunds "were primarily borne by the company rather than passed on to consumers through product prices" Nintendo reported a 9.5% decrease in first-quarter net sales, but operating profit rose 150.5% due to higher software revenue and $300 million in US tariff refunds. Lawyers representing Nintendo clarified that the firm "imposed modest and selective price adjustments, and it chose to bear the costs of tariffs on some of its most popular products of 2025, including its flagship console, the Switch 2." The numbers For the three months ending June 30, 2026 - Net sales: ¥517.8 billion ($3.2 billion), down 9.5% - Operating profit: ¥142.5 billion ($902.7 million), up 150.5% - Ordinary profit: ¥206.1 billion ($1.3 billion), up 115.1% - Net profit: ¥147.4 billion ($925 million), up 53.3% The highlights Nintendo's dedicated video platform sales fell 13.3% to ¥483 billion ($3 billion), primarily due to lower hardware sales. However, digital sales rose 90% to ¥132.7 billion ($840 million), driven by higher sales of downloadable packaged software. Nintendo's IP segment sales reached ¥34.8 billion ($220 million), a 107.4% year-on-year increase, driven by a "high level of audience engagement" with The Super Mario Galaxy Movie, which has surpassed $1 billion at the global box office.