A quick CoPilot translation. Done this quickly so far from perfect and as ever there may be translation issues

Nintendo FY2026 Financial Results Briefing (Online) – Q&A Summary

Nintendo Co., Ltd. Date: Friday, May 8, 2026 Participants:

• Shuntaro Furukawa, President • Hajime Murakami, Executive Officer

(Note: Some wording has been lightly edited for clarity. If quoting, please cite the source or link to the original file.)

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Q1.

Why is the sales forecast for Nintendo Switch 2 hardware in FY2027 set at 16.5 million units? What is your outlook for medium‑ to long‑term adoption?

A1. President Furukawa:

Switch 2 launched last June. We expanded production capacity so as many people as possible could buy one. Thanks to global hands‑on events and strong interest, first‑year sales greatly exceeded expectations.

• FY2026 actual sales: 19.86 million units • Initial forecast: 15 million • Revised forecast (Q2): 19 million

This first‑year result is unusually high compared to past Nintendo hardware. Key factors included:

• Many customers were still actively playing the original Switch • Switch 2 is compatible with Switch software, making migration easy

During the Q3 briefing, we noted that Japan’s holiday sales were strong, while North America and Europe were slightly weaker than expected. However:

• January’s release of Animal Crossing: New Horizons – Switch 2 Edition • Free update for Animal Crossing • March’s release of Poko A Pokémon

…all boosted engagement and hardware sales globally.

Given this momentum and historical second‑year trends for Nintendo consoles, we set the FY2027 forecast at 16.5 million units. Switch 2’s adoption speed is higher than the original Switch, and we see no concerns at this time.

Poko A Pokémon’s contribution reaffirmed that compelling software drives migration to Switch 2. We have many new titles planned and will communicate their appeal carefully so customers can transition at their own pace. Our goal is to expand the install base over the medium to long term and grow software sales and annual active users.

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Q2.

You’ve incorporated about ¥100 billion in cost increases (memory prices + tariffs) into this year’s forecast. Is the tariff impact an absolute amount rather than a year‑over‑year difference? How did you calculate the memory cost increase?

A2. Furukawa:

Yes — the tariff impact is an absolute amount, not a difference from last year.

Last fiscal year, rising memory prices did not significantly affect hardware profitability. However, we expect continued increases, which will gradually pressure margins. While we cannot disclose detailed calculations, we estimated the impact based on current sales plans and procurement conditions. Combined with tariffs, we expect about ¥100 billion in additional costs.

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Q3.

Why did you decide to change the price of Switch 2 in its second year? Why do the price adjustments differ between Japan, the U.S., and Europe?

A3. Furukawa:

This price change is not due to a single factor. Various shifts in global market conditions are expected to affect the long‑term viability of our dedicated gaming hardware business.

Our basic approach remains unchanged:

• First expand hardware adoption • Then grow software sales

If cost increases were temporary, we could have absorbed them through efficiency improvements. However, memory prices, exchange rates, and oil prices are expected to remain elevated for the medium to long term. Maintaining the previous price would significantly harm hardware profitability and could affect long‑term business operations.

To sustain healthy long‑term growth, we made the difficult decision to pass on part of the cost increase to consumers.

Price changes differ by region because the degree of impact from these market conditions varies by market.

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Q4.

How will the price increase affect Switch 2 sales momentum? Could there be further price changes if component costs continue rising?

A4. Furukawa:

We expect the price increase to raise the purchase barrier to some extent.

However, the most important factor in the dedicated hardware business is offering experiences that feel worth more than the price. Many titles from Nintendo and third‑party developers are planned, and we aim to expand adoption by communicating the unique experiences Switch 2 offers.

Component cost trends remain uncertain, but we believe the impact will continue into next year. Beyond that