Nintendo Q1 Operating Profit Jumps 150.5% to $902 Million as $300 Million Tariff Refund Lifts Results
Updated
Updated · The Verge · Aug 6
Nintendo Q1 Operating Profit Jumps 150.5% to $902 Million as $300 Million Tariff Refund Lifts Results
3 articles · Updated · The Verge · Aug 6
Summary
142.5 billion yen in operating profit for April-June beat estimates, up from 56.9 billion yen a year earlier as Nintendo booked a sharp first-quarter earnings surge.
A roughly $300 million U.S. tariff refund cut cost of sales, while software demand also strengthened—Switch 2 game sales rose 9.2% and original Switch software sales climbed 38.6%.
3.82 million Switch 2 consoles sold in the quarter, down from 5.82 million a year earlier but above the prior quarter's 2.49 million, showing hardware softened even as game sales improved.
Nintendo said it absorbed tariff costs rather than passing them on through higher prices, a position central to a lawsuit accusing it of keeping refunds despite charging customers more.
The dispute mirrors a similar case against Sony and adds legal scrutiny to how game-console makers handled tariff-driven price increases and later refunds.