Nintendo’s Q2 Profit Falls 29% as Switch 2 Slows, Chip Costs Rise

Nintendo reported second-quarter net profit of ¥73.5 billion ($465.3 million). Profit fell 29% from a year earlier and missed analyst expectations.

Slower Switch 2 sales and rising memory-chip costs squeezed profit margins. Nintendo also cited a lack of major new game releases as a factor in sluggish sales.

Switch 2 hardware sales totaled 6.49 million units in the first half of the fiscal year. That was a 37% decrease from the same period last year. Nintendo sold 10.4 million units then, following the console’s launch.

Despite the quarterly decline, Nintendo maintained its full-year profit and sales forecasts.