Nintendo Second Quarter Financial Results and Corporate Management Policy Briefing

Nintendo has entered a period of significant fiscal expansion, underscored by the highly successful launch of the Nintendo Switch 2. During the first half of the 2026 fiscal year, net sales surged by 110.1% to 1,099.5 billion yen, a performance driven by the record-breaking sale of 10.36 million console units within four months. With 84% of the existing user base already transitioned to the new hardware, the company has raised its full-year financial forecasts and increased annual dividends. This robust financial position is supported by a strategic shift toward a 60% consolidated payout ratio, signaling confidence in the company’s long-term growth trajectory and its transition into a new phase of business.

The core strategy centers on leveraging unique intellectual property across a diversified entertainment ecosystem. By integrating gaming with film production, mobile applications, merchandise, and real-world experiences like theme parks and the Nintendo Museum, the company aims to cultivate multi-generational consumer relationships. This approach is anchored by the Nintendo Account system, which connects over 400 million users globally, providing a foundation for sustained engagement. The company maintains a firm commitment to maintaining direct oversight of these IP expansions to ensure brand consistency and quality.

Looking ahead, Nintendo is prioritizing long-term stability by reinvesting cash reserves into research and development, talent acquisition, and global infrastructure. These investments are complemented by a focus on environmental, social, and governance initiatives, including supply chain responsibility and transparent corporate governance. By balancing aggressive hardware adoption with a broader strategy of brand diversification, the company seeks to maintain its status as a leader in family-friendly entertainment while remaining resilient against market volatility.