Switch 2 outsells original in first year
Nintendo’s new console sold 23 million units in its first year, surpassing the original Switch’s 17 million in the same period. The numbers show the company’s hardware division remains strong despite industry questions about physical media and console longevity.
A New Benchmark for Hardware Sales
In just 12 months, it outsold the GameCube’s entire five-year run. This achievement marks how much Nintendo’s hardware business has improved over two decades.
Sales momentum slowed in the quarter ending June 2026, dropping over 30% year-over-year. The decline was anticipated, as the previous year included the console’s strong launch period.
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Software Trends and Quarterly Shifts
Game sales for the new system rose 9% year-over-year. The original Switch saw an even larger 38% increase during the same time. Tomodachi Life contributed significantly to this growth, selling 8 million copies between April and early August.
These software results boosted net profit by 53% year-over-year.
The company’s handling of tariff refunds differs from other tech firms. While Apple will reinvest its $2.2 billion recovery into domestic manufacturing and Amazon plans to pass savings to consumers, Nintendo kept its pricing unchanged.
Tariff Litigation and Financial Impact
A U.S. Supreme Court ruling led to $300 million in refunds for Nintendo. The court ruled the Trump administration’s 2025 tariffs were illegal. The government has paid over $80 billion of the $166 billion owed to manufacturers and retailers. Sony, Amazon, Walmart, and Apple also received payments.
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The company kept the $450 launch price despite tariffs on its Vietnamese manufacturing. This decision held even when Vietnam faced a proposed 46% rate.
A lawsuit now challenges this approach. Customers want a share of the refunds. Nintendo maintains it has no obligation to compensate buyers who paid prices set during the tariff period.
Beyond gaming, the company is expanding into film. The Super Mario Galaxy Movie opened in April and passed $1 billion at the box office. A live-action The Legend of Zelda movie is set for 2027.
