Have you ever looked at your bank account and wished it would just double overnight? Well, that is basically what just happened to Nintendo. If you thought the gaming industry was slowing down or that the cost-of-living crisis was going to kill console sales, you were wrong. We were all wrong. The House of Mario just dropped their latest financial report, and honestly, it is kind of terrifying how much money they are making.
The company reported that its net sales were up 99.3% year-on-year, hitting ¥1.9 trillion ($12.3 billion) for the first nine months of its 2025/26 financial year. That is almost a 100% increase. In a world where economic growth is sluggish and geopolitical tensions are making everyone nervous, Nintendo is just out here printing money like it is 2008 all over again.
The "Explosion" of Profit: Breaking Down the Billions
Let’s get into the nitty-gritty financial stuff before we talk about the games you are playing. Nintendo didn't just sell a lot of consoles; they made a lot of pure profit.
**Operating profit rose 21.3% to hit ¥300.4 billion ($1.9 billion)**, while the company's ordinary profit came in at ¥445.8 billion ($2.9 billion), representing a 39.4% increase year-on-year. And if that wasn't enough to make investors happy, Nintendo also reported a 51.3% increase in its net profit, which tallied to ¥358.8 billion ($2.3 billion).
Why does this matter to you? Because it means Nintendo is safe. In an era where tech giants are laying off thousands of people due to labor market shifts and unstable macroeconomics, Nintendo’s war chest is overflowing. This stability is crucial. It means they can keep taking risks on weird ideas (like whatever Donkey Kong Bananza is) without worrying about economic repercussions if a single game flops.
Economic Context: Defying the Gloom
Usually, when you read about international trade these days, it is doom and gloom. We hear about international conflicts disrupting shipping lanes or economic sanctions making it hard to get parts. Yet, Nintendo somehow managed to navigate these supply chains perfectly.
Manufacturing 17 million complex electronic devices and shipping them globally without major shortages is a logistical miracle. It suggests that foreign investment in their manufacturing partners (likely in Vietnam and elsewhere to avoid reliance on single regions) has paid off. They dodged the geopolitical tensions that have plagued other tech sectors.
Switch 2 vs. The Original: A New King is Crowned
Everyone was worried. Could Nintendo strike lightning twice? The original Switch was a phenomenon. But the numbers don't lie.
To date, the Nintendo Switch 2 has sold 17.37 million units, 7.01 million of which were in the three months ending December 31, 2025. It's the most impressive sales quarter that the console has had so far, beating the 5.82 million units that the hardware shifted when it was released in Q1.
Let’s put that in perspective with a table, because numbers look better in boxes.
Console Launch Comparison (First 9 Months)
| Console | Units Sold | Launch Timing | Trend |
| Nintendo Switch (2017) | 14.86 Million | March Release | High |
| Nintendo Switch 2 (2025) | 17.37 Million | June Release | Explosive |
Nintendo Switch 2 is also outstripping its predecessor's performance; in the first nine months of the company's 2018 financial year, the original Nintendo Switch had sold 14.86 million units following its March 2017 release. Nintendo Switch 2 launched later in the year – in June – and has sold more consoles in the same timeframe.
This proves that the demand for hybrid gaming hasn't gone away. It is growing. The microeconomics of the household budget might be tight, but people are clearly prioritizing entertainment. They might cut back on dining out, but they are still buying the new Nintendo.
The Software: What Are You Actually Playing?
You bought the console, but what did you buy with it? The attach rate (that’s business speak for how many games you buy per console) is looking healthy.
The platform holder has also updated some sales figures for Nintendo Switch 2 titles; Mario Kart World has sold 14 million copies, and is by far the console's biggest seller to date. This is insane. Almost everyone who bought the console bought Mario Kart. It is the essential purchase.
Meanwhile, Donkey Kong Bananza has shifted 4.25 million units. The Nintendo Switch 2 version of Pokémon Legends Z-A has sold 3.89 million, coming in ahead of Kirby Air Riders, which has shifted 1.76 million units.
Physical vs. Digital: The Battle Continues
In total, 58.7% of all Nintendo games sold during Q3 were physical. This is a fascinating stat. In a world moving to digital, Nintendo fans still love their cartridges. Maybe it is the resale value, or maybe it is just the joy of licking the cartridge (don't do that, they still taste bad).
This reliance on physical media also ties back to international trade. Shipping millions of plastic cartridges around the world involves complex supply chains. If economic sanctions or trade wars were to escalate, this physical dominance could become a liability, but for now, it is a massive revenue driver for retailers.
The Old Guard: The Original Switch is (Slowly) Dying
We have to pour one out for the OG Switch. It had a good run. The Nintendo Switch did sell 3.25 million consoles for the nine months ending December 31, 2025, a 66% drop year-on-year.
It is a steep drop, but expected. You don't buy the old iPhone when the new one is out, right? However, the install base is staggering. To date, the hardware has sold a total of 155.37 million copies and was played by 129 million people between January and December 2025. That's a very slight decrease from 2024's 130 million.
People aren't abandoning their old Switches yet. They are likely handing them down to younger siblings or keeping them as secondary devices. This creates a massive ecosystem where software can still sell. Nintendo Switch 2 software came in at 37.93 million sales, outperformed by Nintendo Switch's 108.93 million, though that itself was a 12.1 % decrease year-on-year.
Main Points of the Report
Net Sales Explosion: Up 99.3% to ¥1.9 trillion.
Switch 2 Dominance: 17.37 million units sold in roughly 6 months.
Mario Kart is King: 14 million copies sold.
Legacy Strength: 129 million people still played the original Switch last year.
Physical Media: Still accounts for nearly 60% of game sales.
Why This Matters for the Global Economy
You might think, "It is just video games," but this is a massive indicator of global consumer confidence.
Economic Repercussions of Success
When a Japanese company brings in $12.3 billion in nine months, mostly from overseas markets (the US and Europe), it affects currency exchange rates and international trade balances. It brings massive amounts of foreign capital into Japan, which is crucial for its economic growth.
Supply Chain Resilience
The fact that you can walk into a store and buy a Switch 2 right now (mostly) means that the supply chains for semiconductors are healing. Despite the fears of international conflicts over Taiwan or economic sanctions on raw materials, the tech sector is finding a way to keep moving.
Labor Market Stability
Game development is labor-intensive. These sales numbers justify the employment of thousands of developers, artists, and testers. While other sectors face a shrinking labor market, the gaming industry—at least the Nintendo side of it—remains a stronghold of employment.
Frequently Asked Questions (FAQ)
Q: Is the original Switch dead?
A: Not yet. With 129 million active users, Nintendo will keep supporting it for a while. But don't expect major new exclusives. The focus is now on Switch 2.
Q: Why are physical games still so popular?
A: Nintendo fans are collectors. Plus, physical games can be shared or resold, which is better for your personal microeconomics.
Q: Did the global economy affect the price?
A: Yes. Inflation and economics played a role. The console is more expensive than the original was at launch, reflecting higher component costs and supply chain expenses.
Q: Will Mario Kart World come to the old Switch?
A: Unlikely. They need a reason for you to upgrade. Keeping their biggest hit exclusive is a classic business strategy to drive growth in new hardware adoption.
Conclusion: A bright spot in a messy world
The world in 2026 is complicated. We have geopolitical tensions, confusing economics, and a lot of uncertainty. But at least we have Mario.
Nintendo's ability to double its sales in such a volatile environment is nothing short of impressive. It shows that high-quality entertainment is recession-proof. Whether you are an investor looking at foreign investment opportunities or just a gamer looking for your next obsession, the Switch 2 is the real deal.
The company is navigating the minefield of international politics and economic sanctions with the grace of a figure skater. They have built a product people want, delivered it on time, and are reaping the rewards. Now, if you'll excuse me, I have to go try and unlock the golden tires in Mario Kart World.
"Contact us via the web."
Sources
Nintendo Financial Release - Earnings Release Semiconductor Supply Chain Analysis - Bloomberg
Libellés:
Nintendo Switch 2, Mario Kart World, international conflicts, geopolitical tensions, economics, economic impact, labor market, international trade, economic sanctions, macroeconomics, microeconomics, economic growth, foreign investment, supply chains, growth, Video Game Sales, Earnings Report 2026.
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