Nintendo Co., Ltd. develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and other international markets. Its offerings include home console gaming hardware, software, accessories, and related products, as well as services such as Nintendo Switch Online and other services and content. The company also develops intellectual property, including video content and mobile apps. Formerly known as Nintendo Playing Card Co., Ltd., it changed its name to Nintendo Co., Ltd. in 1963, was founded in 1889, and is headquartered in Kyoto, Japan.
Nintendo's profit surges on tariff refunds and software, but memory costs bite
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Q1 profit jumps 150% on tariff refunds and software Nintendo's Q1 operating profit surged 150.5% to ¥142.5bn, beating estimates, helped by ~$300m in US tariff refunds and strong software sales. This directly boosts earnings and investor confidence, pushing the stock up 5.26% to ¥8,043.
This is the main new event that moved the stock sharply this period.
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Nintendo claims $936m in tariff refunds Nintendo is set to receive $936m in refunds after the Supreme Court struck down Trump's tariffs. This is a large one-time cash boost, improving profitability and funding future investments, though a customer class action seeks to pass refunds on.
It quantifies a major financial windfall that supports earnings and cash flow.
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Memory chip shortage forces Switch price hikes An AI-driven memory shortage has quadrupled chip prices, forcing Nintendo to raise Switch 2 and Switch prices. Higher prices may dampen demand, and rising costs could squeeze margins if not fully passed on, weighing on future sales.
It highlights a key cost pressure and potential demand risk that could offset recent gains.
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Switch 2 hardware sales fall 34% but software shines Switch 2 hardware sales dropped 34.4% year-over-year to 3.82m units, yet software sales rose 9.2% and original Switch software jumped 38.6%. The mixed picture shows reliance on software and IP, with hardware decline a concern for future revenue.
It reveals a key divergence in the business that investors need to weigh.
Q3 2026
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Nintendo's profit surges on tariff refunds and software, but memory costs bite
▲
Q1 profit jumps 150% on tariff refunds and software Nintendo's Q1 operating profit surged 150.5% to ¥142.5bn, beating estimates, helped by ~$300m in US tariff refunds and strong software sales. This directly boosts earnings and investor confidence, pushing the stock up 5.26% to ¥8,043.
This is the main new event that moved the stock sharply this period.
▲
Nintendo claims $936m in tariff refunds Nintendo is set to receive $936m in refunds after the Supreme Court struck down Trump's tariffs. This is a large one-time cash boost, improving profitability and funding future investments, though a customer class action seeks to pass refunds on.
It quantifies a major financial windfall that supports earnings and cash flow.
▼
Memory chip shortage forces Switch price hikes An AI-driven memory shortage has quadrupled chip prices, forcing Nintendo to raise Switch 2 and Switch prices. Higher prices may dampen demand, and rising costs could squeeze margins if not fully passed on, weighing on future sales.
It highlights a key cost pressure and potential demand risk that could offset recent gains.
◆
Switch 2 hardware sales fall 34% but software shines Switch 2 hardware sales dropped 34.4% year-over-year to 3.82m units, yet software sales rose 9.2% and original Switch software jumped 38.6%. The mixed picture shows reliance on software and IP, with hardware decline a concern for future revenue.
It reveals a key divergence in the business that investors need to weigh.
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Nintendo's fiscal year ending March 2026: revenue nearly doubles to 2.313 trillion yen, but operating margin falls to 15.6%
Nintendo's full-year results for the fiscal year ending March 2026 showed revenue nearly doubling to 2.313 trillion yen, up 98.6% from the prior year, while its operating margin fell from 24.3% to 15.6%, the lowest level in five fiscal years. Operating profit rose 27.5% to 360.1 billion yen, ordinary profit rose 45.6% to 542.1 billion yen, and net profit rose 52.1% to 424 billion yen. Gross profit margin also fell by more than 20 points, from 61.0% to 39.3%, as revenue grew by 1.1481 trillion yen while cost of sales rose by 949.3 billion yen, a structure in which most of the added revenue was absorbed by costs. Ordinary profit exceeded operating profit by a little over 180 billion yen, driven by 182.9 billion yen in non-operating income, including 82.7 billion yen in equity-method investment gains, 46 billion yen in interest income, and 44.3 billion yen in foreign exchange gains, with hefty financial assets of 1.3166 trillion yen in cash and deposits, 425 billion yen in short-term securities, and 420.8 billion yen in investment securities generating profit outside the core business. The share price fell from the 13,000 yen range at the end of October 2025 to the 6,800 yen range by the end of June 2026, nearly halving, before rebounding to the 9,000 yen range by the end of August.
7974.JP · Capital · Neutral Revenue nearly doubled but operating margin fell to 15.6% and gross margin dropped over 20 points as costs absorbed most added revenue, with profit boosted by non-operating financial gains.
Oil Extends Gains on Middle East Hostilities as ECB Rate Decision Looms
Oil prices rose further Thursday on resurgent Middle East hostilities, fanning concerns about high inflation that is widely expected to push the European Central Bank to raise interest rates this afternoon. Brent North Sea crude, the main international benchmark, traded near $102 a barrel, having surpassed $100 on Wednesday for the first time since late July, while West Texas Intermediate was up 1.3 percent at $97.25 per barrel. Investors will focus on comments from ECB chief Christine Lagarde on the prospect for further hikes, which could weigh on growth across the eurozone. With the United States and Iran exchanging strikes around the Strait of Hormuz, and Saudi Arabia entangled in a conflict with Yemeni rebels allegedly seeking to control the Bab al-Mandab strait to the Red Sea, there appears little prospect Gulf energy shipments will return to normal soon. In company news, Nintendo shares sank almost five percent following an online showcase of coming games, and Apple unveiled its first folding iPhone, kicking off the era of its new CEO John Ternus.
Sony Seeks Dismissal of PS5 Buyers' $508M Tariff Refund Claim
Sony has asked a federal judge to dismiss a class action demanding that PlayStation 5 buyers get a share of the $508 million it expects to recover in tariff refunds, calling the claim "speculative and illogical." In a motion filed Monday, Sony's lawyers argued that paying fair market price for voluntarily purchased goods is not a legally cognizable injury, and cited inflation, currency moves, component costs, logistics, competition, and demand as alternative explanations for the August 2025 price rise. PlayStation prices increased again in March, five weeks after tariffs fell, raising the standard PS5 to $649.99 in the U.S. and lifting prices in the U.K., Europe, and Japan, which Sony says contradicts the claim that tariffs drove the initial increase. Microsoft filed a similar motion on August 21, and Nintendo has also sought dismissal, while Panic, maker of the Playdate handheld, has refunded the 19% tariff it charged customers. No judge has ruled on any of the motions.
Tim Cook Steps Down as Apple CEO, Warns of 'Hundred-Year Flood' in Memory Chip Prices
After 15 years at the helm of one of the world's most valuable companies, Cook stepped down as chief executive on Sept. 1, handing the reins to longtime hardware chief John Ternus. Cook remains as executive chairman, but in his final earnings call he warned that Apple faced a "100-year flood" in memory-chip pricing, driven by AI data center demand. He told The Wall Street Journal, "This is a hundred-year flood. I've never seen anything like it in any area in over 40 years." Tesla and SpaceX CEO Elon Musk publicly agreed, calling it the "biggest price jump in anything I've ever seen." Apple has raised prices on Mac and iPad models, and other makers like Microsoft, Hewlett-Packard, Dell, and Nintendo have followed. Cook's warning underscores that inflation, though eased from its 2022 peak, still threatens purchasing power, with $100 in 2026 equaling just $11.61 in 1970.
GameStop Q2 Profit Rises to $290-310M as Sales Fall
GameStop posted preliminary second-quarter results on Monday showing net income between $290 million and $310 million, up from $168.6 million a year earlier, even as net sales fell to $780 million to $800 million from $972.2 million. The retailer attributed the profit jump to about $238 million in net gains from its eBay derivative asset and equity investment, partially offset by roughly $75 million in losses on digital assets. Operating income is expected to land between $150 million and $170 million, compared with $66.4 million in the prior-year quarter. Sales declined due to the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of its France operations. GameStop also amended its plan to exchange approximately $1.4 billion in convertible notes, now offering noteholders about 55.5 million shares, or 73% of the consideration, and roughly $358.4 million in cash, or about 27%, reducing shareholder dilution. The exchange is expected to close on or about September 3, and GameStop stock rose 5% in premarket trading. Full results are due September 8.
Nintendo's Q1 FY2027 revenue falls but operating profit jumps 2.5 times
Nintendo's first quarter results for the fiscal year ending March 2027 showed revenue down 9.5 percent year on year to 517.8 billion yen, while operating profit surged 150.5 percent to 142.5 billion yen. A higher proportion of software sales lifted the gross margin sharply from 32.4 percent a year earlier to 54.3 percent, and a US tariff refund also boosted profit. Ordinary profit came to 206.1 billion yen and net profit reached 147.4 billion yen, both up strongly. On August 14, the share price rose nearly 7 percent from the previous day to 8,900 yen.
Nexon hits limit-up proportional allocation on special dividend announcement, Nintendo also rebounds sharply
On the Tokyo stock market on August 14, Nexon hit limit-up proportional allocation after announcing a special dividend of 415 yen per share, while Nintendo also rebounded sharply on reports of its Nintendo Switch 2 expansion into Indonesia. Nexon announced the previous day that it would pay a special dividend of 415 yen per share to shareholders of record as of September 30, 2026, which was taken as a positive surprise by the market. Nintendo was boosted by reports that it would launch the Nintendo Switch 2 and Nintendo Switch in Indonesia in December 2026. Tokai Tokyo Securities maintained its Outperform rating on Capcom and raised its target price from 4,780 yen to 5,090 yen, and Capcom rebounded for the first time in three days, with major home video game stocks generally bought. Meanwhile, Mynet plunged after posting an operating loss of 132 million yen in its second-quarter results, falling into the red, and Sun Electronics also fell sharply, at one point being sold down below the 8,000 yen level.
US consumers sue Toyota and others, alleging double recovery from tariff refunds
It was learned on the 12th that US consumers have sued the American subsidiaries of Japanese companies including Toyota Motor, seeking partial refunds of purchase prices for products that were raised due to now-invalidated reciprocal tariffs. They argue that while purchase prices were increased because of tariffs, if companies receive tariff refunds, they would be recovering the amounts twice. Similar lawsuits have also been filed against Nintendo, Sony Group, the US subsidiary of Fast Retailing, which operates Uniqlo, and US companies such as Amazon.com. The plaintiffs point out that consumers ultimately pay the tariffs imposed on importers, and argue that if companies receive refunds from the US government, they should not be allowed to receive double profits from the portion passed on to consumers.
Nintendo to launch Switch in Indonesia in December
Nintendo announced on the 12th that it will launch its home game console, the Switch, in Indonesia in December. It will release the Nintendo Switch and Nintendo Switch 2 this December, marking its entry into Southeast Asia's largest economy. Indonesia's Ministry of Creative Economy said in a statement that a subsidiary of Salim Group, one of the country's largest conglomerates, will become the official distributor of the game consoles. According to state news agency Antara, Axton Salim of Salim Group said the subsidiary will work with Nintendo to establish official repair centers and customer service. Local game developers say Nintendo consoles and game software are currently sold mainly through unofficial channels, making pricing opaque. The Indonesian Game Association said last year that the domestic game market is worth about 30 trillion rupiah, or 1.68 billion dollars, annually, making it the largest in Southeast Asia, but domestic developers account for only about 2.5 percent of total spending.
Nintendo extends sharp gains, closing at 8,043 yen as market welcomes 2.5-fold jump in Q1 operating profit
Nintendo shares ended sharply higher, closing at 8,043 yen, up 5.26% from the previous day. The market welcomed the company's first-quarter results for the fiscal year ending March 2027, which showed operating profit surged 150.5% year-on-year to 142.5 billion yen. Revenue fell 9.5% to 517.8 billion yen, but solid software sales, a higher digital ratio, US tariff refunds, and expanding IP-related income contributed to the sharp profit increase. Progress against the full-year operating profit plan of 370 billion yen reached 38.5%.
Companies claim billions in tariff refunds while households get nothing
Major U.S. corporations are claiming billions of dollars in tariff refunds from the government, months after former President Trump floated $2,000 checks for American households that never materialized. Walmart's refund could reach roughly $2.4 billion, Apple's roughly $2.2 billion, Ford's $1.3 billion, Nintendo's $936 million, and Amazon's $600 million, according to company filings and CNBC calculations. About $86 billion has flowed out of the Treasury, roughly half of what's owed, after the Supreme Court struck down the tariffs in February and a trade court ordered refunds. No federal system exists to pass the money to consumers who ultimately paid higher prices, and a proposed $600-per-person rebate bill has stalled in committee since July 2025. Amazon is the rare company offering automatic refunds to some buyers, while Walmart says the money will go toward lower prices without committing to an amount or timeline.
Nintendo extends gains on strong Q1 profit growth; Bandai Namco recovers above 5,000 yen
On August 7, the Tokyo stock market saw the Nikkei average extend its decline, ending the day down 76.55 yen at 65,606.71. Among gaming and entertainment stocks, Nintendo extended gains after the previous day's first-quarter results showed operating profit surged 150.5 percent year-on-year, a sharp increase that was well received. Bandai Namco also extended gains, recovering above the 5,000 yen level, after reporting record-high first-quarter results and raising its cumulative second-quarter earnings forecast. MegaChips rose for a seventh straight session after swinging to a profit in the first quarter and announcing a share buyback funded by an upward revision in gains from the sale of SiTime shares. Digital Hearts hit its daily limit up with proportional allocation following an announcement of a tender offer by Sandbox, a company wholly owned by Chairman Miyazawa.
Arisawa Manufacturing and Nintendo Raise Earnings Forecasts, Hoshizaki Announces Stock Split
Among individual announcements on August 6, Arisawa Manufacturing revised upward its consolidated earnings forecast for the fiscal year ending March 2027 and raised its annual dividend from the previously planned 98 yen to 110 yen. Nintendo reported consolidated operating profit of 142.596 billion yen for the first quarter of the fiscal year ending March 2027, a 2.5-fold increase year on year, driven by growth in game software sales. Hoshizaki announced a two-for-one stock split effective at the end of December. In addition, Kamei, Kohoku Kogyo, PILLAR, Union Tool, Neturen, and Mitsubishi Materials also revised their earnings plans upward, benefiting from expanding demand related to semiconductors and AI, as well as rising metal prices. Meanwhile, Leader Electronics and Japan Communications each reported a swing to a net loss and a sharp profit decline, respectively, in their first-quarter results.
Nintendo Q1 2026 earnings beat estimates despite Switch 2 sales drop
Nintendo reported first-quarter results that topped revenue and profit estimates, even as Switch 2 console hardware sales fell 34.4% year-over-year to 3.82 million units. Revenue for the quarter ended June 30 came in at 517.8 billion yen, beating analyst expectations of 444.96 billion yen, while net profit rose 53.5% to 147.4 billion yen, surpassing the 78.30 billion yen estimate. Operating profit climbed 150.5% to 142.5 billion yen, aided by roughly $300 million in tariff refunds recorded as a reduction of cost of sales. Software sales for the Switch 2 rose 9.2% to 9.46 million units, and original Switch software jumped 38.6% to 33.81 million units, led by Tomodachi Life: Living the Dream at 7.94 million units. IP-related income more than doubled to 34.8 billion yen, driven by The Super Mario Galaxy Movie surpassing $1 billion in global box office. Nintendo left its full-year outlook unchanged, projecting net sales of 2.05 trillion yen and net profit of 310 billion yen, with Switch 2 hardware expected to reach 16.5 million units, a roughly 17% decline from the prior year.
Nintendo profits surge 53.5% on Trump tariff refund
Nintendo reported a 53.5% jump in profits to ¥147.4 billion for the three months to June, substantially beating expert forecasts of ¥77.8 billion, as earnings were buoyed by a refund on US tariffs. The refund followed a US Supreme Court ruling in February that declared Donald Trump's sweeping trade levies illegal, with the Trump administration refunding about $100 billion of the $165 billion collected. While the Switch 2 console maintained strong sales momentum and popular games performed steadily, overall revenue fell 10% to ¥517.8 billion. Nintendo filed a lawsuit demanding a full refund plus interest, and although a refund appears to have come through, the company has not confirmed the full amount and faces a class action lawsuit from customers claiming it should pass refunds on to consumers.
7974.JP · Tariff · Positive Nintendo's profits surged due to a refund on US tariffs following a Supreme Court ruling, boosting earnings.
7974.JP · Regulation · Neutral Nintendo faces a class action lawsuit from customers claiming it should pass refunds on to consumers, creating legal uncertainty.
Xbox CEO Asha Sharma targets surpassing rival profitability by mid-2030
Microsoft’s new Xbox CEO Asha Sharma aims to bring the gaming division’s margins back to competitor levels by next year and surpass rival profitability by mid-2030. In a Thursday memo to staff, Sharma wrote that Xbox will not live on past successes or be trapped by past failures, and will focus on creating what players will love for decades. Xbox posted a 10% quarterly revenue decline, its weakest since 2022, while Microsoft’s stock spiked almost 16% on Thursday in its strongest session since 2008. Sharma and chief content officer Matt Booty previously anticipated a 3% internal margin, compared with Sony’s 9.9% operating margin from game and network services and Nintendo’s nearly 16%. Sharma said every function and studio will be responsible for returning to growth in players and revenue in the fiscal year ending June 2027, with plans to build long-term franchises across film, television, consumer products, and new global partnerships including China, while investing more than ever in Minecraft and accelerating revenue growth in fiscal 2028 and 2029.
MSFT · Capital · Positive Microsoft's stock spiked nearly 16% on Thursday, its strongest session since 2008, reflecting investor optimism about Xbox's new leadership and growth plans.
6758.JP · Competition · Negative Xbox aims to surpass rival profitability by mid-2030, directly challenging Sony's gaming margins and market position.
7974.JP · Competition · Negative Xbox's goal to surpass rival profitability by mid-2030 poses a competitive threat to Nintendo's gaming margins and market position.
KLab hits temporary daily limit up after signing MOU with overseas defense firm for anti-drone defense system
KLab hit its daily limit up temporarily in the afternoon session. The announcement after the morning close that it had signed a memorandum of understanding with an overseas defense company possessing advanced RF technology to promote the introduction of an anti-drone defense system in the UAE served as a catalyst. Among 96 game and entertainment-related stocks, 71 rose, 22 fell, and 3 were unchanged. Sanrio rebounded after Tokai Tokyo Securities maintained its outperform rating and raised its target price from 1,486 yen to 1,600 yen, while Nintendo extended its decline amid reports that UBS Securities lowered its target price from 8,100 yen to 7,100 yen.
AI-driven memory shortage forces Apple, Samsung, Microsoft, Sony, and Nintendo to raise device prices
A global shortage of memory chips, driven by surging demand for AI data centers, is forcing major consumer electronics companies to raise prices on devices. Apple recently increased prices on MacBooks, iPads, home devices, and Vision Pro, while Samsung launched its Galaxy S26 smartphones, Tab S11 tablets, and Galaxy Z Flip 7 at higher prices than predecessors. Microsoft raised prices on Xbox Series S and Series X consoles, Sony previously increased PlayStation 5 costs, and Nintendo hiked the price of its Switch 2 and original Switch console. The shortage stems from data center builders consuming vast amounts of HBM memory, which shares manufacturing capacity with the DDR RAM used in consumer devices, and new factories will take years to come online.
Switch 2 cash flow uncertainty reshapes Nintendo investment case
Analysts are highlighting a disconnect between Nintendo's current share price and intrinsic value estimates based on discounted cash flow and earnings multiples, with attention centering on cash generation from the anticipated Switch 2 console cycle. Investors appear to be weighing robust existing cash flows against uncertainty around future hardware demand and software sales momentum, creating tension between fundamental valuations and perceived execution risk. Four fair value estimates from the Simply Wall St Community span roughly ¥8,277 to ¥11,364.88, reflecting divergent views on Nintendo's worth. The investment narrative still centers on execution around Switch 2 launches, software attach rates, and how convincingly management converts those into cash flows, against risks of hardware fatigue, slower software momentum, and governance questions such as board independence and rising CEO pay.
7974.JP · Capital · Neutral Analysts highlight disconnect between share price and intrinsic value estimates, with divergent fair value views and uncertainty around Switch 2 cash flow generation.
NBCUniversal Spinoff Speculation Raises Questions About Nintendo’s Future
Speculation is building that a potential NBCUniversal spinoff from Comcast could lead to major gaming acquisitions, with Nintendo highlighted as a possible target. NBCUniversal already works with Nintendo on theme parks and films, raising questions about deeper ties between the two companies. Nintendo’s stock trades at ¥6,999.0, down 34.3% year to date and 44.9% over the past year, though it has gained 14.5% over three years and 19.6% over five years. Any move from NBCUniversal, or even credible talk of one, may influence how investors think about Nintendo’s negotiating position, partnership choices, and long-term role in the broader entertainment ecosystem.
Elon Musk and Tim Cook issue red alert over unprecedented cost surge in tech supply chain
Apple CEO Tim Cook and Tesla CEO Elon Musk have both issued stark warnings about an unprecedented surge in costs hitting the technology supply chain. Cook described the situation as a 'hundred-year flood' and said he has never seen anything like it in over 40 years, while Musk called it the 'biggest price jump' he has ever witnessed. The warnings came as Apple prepared to raise prices on its products to offset soaring costs for memory and storage chips, with Cook stating that price increases are unavoidable. On June 25, Apple announced price hikes of hundreds of dollars for Macs and iPads, and other major device makers such as Hewlett-Packard, Dell, and Nintendo have already raised prices. The Wall Street Journal reported that prices for memory and storage chips have quadrupled since last year amid surging demand driven by the artificial intelligence buildout.
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