Nintendo recorded a massive rise in revenue on Tuesday as the Nintendo Switch 2 became the fastest-selling console it ever released.
The gaming giant’s revenue rose 86% year-over-year to 806.32 billion Japanese yen (US$5.2 million).
Despite this jump, it still fell short of the 847.73 billion yen expected by analysts.
However, net profit managed to jump 24% year-over-year to 159.93 yen and beat analyst expectations of 147.3 billion yen.
The company also maintained its sales forecast for the Switch 2 of 19 million units in the fiscal year ending March 2026.
So far, the gaming giant has sold 17.37 million units of the console, with 7 million units sold in the December quarter alone.
Last month, research firm Circana said the Switch 2 was the best-selling console in December in the U.S.
However, future sales of the console have become a headwind for Nintendo.
When the Switch 2 was first announced, the company’s stocks hit a record high of over 14,000 in August, but have since fallen more than 30%.
Analysts are wary of whether the Switch 2, which was released in June last year, has a strong enough pipeline of games to convince people to upgrade from its predecessor.
This comes as the original Nintendo Switch becomes Nintendo’s best-selling console of all time, even surpassing the iconic Wii, Nintendo DS and Gameboy.
The gaming giant said that the lifetime sales of the Switch, which was released in March 2017, have now totalled 153.7 million units.
Another potential headwind for the company is the surge in memory prices, which is a key component in its consoles.
Nintendo President Shuntaro Furukawa told Reuters that the price surge is not significantly impacting Nintendo's results this financial year, but if the spike continues beyond expectations and persists over the long term, it could pressure profitability.
Nintendo (TYO: 7974) stocks rose 1.83% on Tuesday to 10,080 yen. The company’s market cap is 11.52 trillion yen.
