The commercial success of the Switch 2 offers Nintendo a welcome respite after several years of transition. In the first nine months of its 2025-2026 fiscal year, the Japanese company posted a spectacular increase in its results, driven by what was considered an exceptional launch for its new hybrid console. But behind these impressive figures, a concern persists: the growing pressure on the global memory chip market, fueled by the rapid expansion of artificial intelligence infrastructure.
Between April and December, Nintendo posted a net profit of nearly 359 billion yen, or approximately €1,95 billion, a 51% year-on-year increase. During the same period, its revenue nearly doubled, reaching over 19 trillion yen. This surge is directly linked to the Switch 2, launched in June and already selling over 17 million units. The company maintains its target of 19 million consoles sold by the end of the fiscal year in March.
This robust start was accompanied by particularly strong game sales. Mario Kart World, available from the console's launch, surpassed 14 million units sold. Other flagship titles, such as Pokémon Legends: Z.A., compatible with both generations of consoles, also enjoyed considerable success. Nintendo is thus continuing its strategy of a smooth transition, relying on backward compatibility to quickly expand the Switch 2's player base.
Record prospects, but a model under pressure
Based on these results, Nintendo still anticipates nearly doubling its annual sales to 2.25 trillion yen, an unprecedented level in its history. Annual net profit is also maintained at 350 billion yen, a threshold already reached in just nine months. This momentum confirms that, despite its forays into film and theme parks, the group's core business remains firmly rooted in consoles and video games.
However, the outlook is not entirely clear. The company must contend with an increasingly challenging industrial environment. Memory chip manufacturers are now focusing a large portion of their production on the enormous needs of data centers dedicated to artificial intelligence. As a result, the prices of essential components for consoles, smartphones, and laptops are skyrocketing.
This pressure on costs could call into question a principle long considered established in the video game industry: the gradual decrease in console prices over time. Analysts believe that a price increase for the Switch 2 is not impossible, even if Nintendo would first seek to absorb the shock through other means before considering a direct impact on consumers.
An industry in transition, without an immediate threat from AI
Despite the recent buzz surrounding technological announcements about generative AI applied to video games, experts consider a short-term challenge to Nintendo's model unlikely. While tools are now capable of generating playable environments from simple instructions, they still fall far short of offering experiences comparable to those of the industry's major narrative and interactive franchises.
In this context, Nintendo is walking a tightrope. On the one hand, the Switch 2 confirms the company's ability to create a buzz and attract a massive audience. On the other, the increased reliance on strained supply chains highlights the structural fragility of an industry that is heavily reliant on components. Commercial success is undeniable, but its long-term viability will now depend as much on the creativity of its studios as on the uncertain stability of the global semiconductor market.
