Switch 2 Sales Dip 34% Yet Nintendo Expects Growth on Strong Software

Nintendo’s Switch 2 quarterly sales dropped 34.4% year-over-year to 3.82 million, but the company says demand remains solid and cumulative Switch 2 sales total 23.68 million, edging past the original Switch. A price hike to $500 in September could curb demand, yet Nintendo maintains its 16.5 million unit forecast for fiscal 2027. Revenue beat estimates thanks to strong software sales and about $300 million in Trump tariff refunds; Tomodachi Life: Living the Dream led with 7.96 million copies sold in three months, with other top titles including Pokémon Pokopia, Mario Kart World and Donkey Kong Bonanza. Ongoing headwinds include tariffs and higher memory costs, adding roughly 100 billion yen ($633 million) to cost of sales. Separately, The Super Mario Galaxy Movie has grossed over $1 billion globally, underscoring spin-off content strength.