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Nintendo Switch Sales Strong in Q2 as Operating Profit Drops 10%

The House of Mario continues to power up sales: Nintendo sold 2.13 million Switch units in the June 2019 quarter, up 13% from the year-earlier period.

To date, the Japanese video-game company has sold 36.87 million Nintendo Switch consoles. The sustained sales performance of the hybrid game system comes as it preps the September launch of a lower-cost, mobile-only option: Nintendo Switch Lite, priced at $199 (33% less than the Switch’s list price of $299).

About the Switch Lite, the company said, “By offering consumers a choice of hardware that matches their preferred play style, we aim to further expand the installed base for Nintendo Switch.”

Overall, Nintendo quarterly sales grew 2.4%, to about $1.59 billion (172.1 billion yen), of which 76.5% was generated outside of Japan. Operating profit missed analyst expectations, coming in at $252 million (27.4 billion yen), a year-over-year decline of 10.7%. Net profit dropped 46%, to about $153 million (16.6 billion yen), which the company blamed on foreign currency exchange-rate fluctuations.

Last month’s release of “Super Mario Maker 2” for Nintendo Switch sold 2.42 million units in the period. Other Switch titles continued to show growth, including “Mario Kart 8 Deluxe,” which sold 1.2 million units in the most recent quarter (17.89 million units to date).

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Ahead of the Nintendo Switch Lite intro, sales of the legacy Nintendo 3DS system continued to drop: Hardware sales totaled 200,000 units (down 45% year-on-year) and software sales came to 1.48 million units (a 50% decrease).

Sales of downloadable versions of Nintendo Switch titles showed particularly steady growth, with digital sales rising 65% year over year, to $282 million (30.6 billion yen).

In its earnings release, Nintendo called out upcoming titles for Switch, including “Fire Emblem: Three Houses” (July), “Astral Chain” (August), “The Legend of Zelda: Link’s Awakening” (September), “Luigi’s Mansion 3” (October). Heading into the holiday season, expectations are high for “Pokémon Sword” and “Pokémon Shield” (November), while next year will see the release of “Animal Crossing: New Horizons” (March 2020).

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