Holiday Quarter

Nintendo’s Switch 2 is defying sales skepticism, maintaining its full-year forecast of 19 million units. It’s already Nintendo’s fastest-selling console, with strong holiday quarter performance driven by titles like “Mario Kart World.” Despite a stock dip, revenue and profit exceeded expectations. However, rising memory component costs pose a future challenge, potentially impacting profitability and leading to higher prices for consumers. The console’s long-term success depends on a strong game pipeline and convincing users to upgrade.