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The story
Nintendo’s Switch 2 saw second-quarter FY2026 sales fall 15.0% year-on-year, with operating profit down 16.3%, missing market expectations. Yasuda, a gaming-industry commentator, said the impact of the US price hike is showing up heavily, remarking that “the year-end sales season won’t be better than last year.” On the thread, since Yasuda had previously argued that “as long as the hardware has appeal, price and performance have nothing to do with sales” (dubbed the “Shape Hypothesis”), voices questioned the consistency of now blaming the downturn on the price hike. Regarding the operating-profit comparison with Sony, explanations and counterarguments were exchanged about how consolidated financial statements actually work.
Nintendo “Switch 2” Q2 Sales Down 40%, Missing Market Expectations — Clouds Over Year-End Sales Season
Source: bloomberg.com / Original article here
What people said
No matter how you slice it, that's not happening
I'm calling it 13.5 million / 16.5 million units.
The game industry itself is a fickle, garbage business.
That's exactly why Konami — which built itself multiple revenue pillars — wasn't even recognized enough to join the Nikkei 225 until relatively recently.
But people who want one will buy it anyway.
Hoping for a price drop next year.
No way that happens.
Chinese memory chips won't be ready until like 2029.
Quality's still unknown too — yields are reportedly garbage right now.
https://krsw.5ch.io/test/read.cgi/ghard/1794102025/
Nintendo Q2 FY2026, year-on-year
• Revenue: ¥448.2 billion (-15.0%)
• Operating profit: ¥73.9 billion (-16.3%)
• Ordinary profit: ¥94.5 billion (-32.6%)
• Net profit: ¥73.4 billion (-28.6%)
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(´・ω・｀) Guess the declining-revenue-declining-profit Triforce (a jab referencing Zelda's three-triangle symbol) is a Nintendo exclusive
Operating profit's already at a 60% progress rate before the year-end sales season even starts, you blockhead (lit. "wall" — thread slang for someone who doesn't get it).
FY2026 full-year plan
The impact's still coming, then.
It was from September 1st.
Right? That's what I thought too — and seeing him casually blame the price hike now feels off.
Eaten into where? PS5 still isn't selling at all in Japan lol
It's not new at all, but they did add mouse functionality. Though Nintendo barely uses it either, so it's dead on arrival.
Even in Japan, Nintendo's last stronghold, the gap keeps closing.
Yeah, the gap between Switch 2 and PS5 keeps shrinking.
• Consoles sell on the hardware's own appeal (design, play style), so price and specs are irrelevant
• Likewise, software has zero effect on hardware sales either
If Yasuda's now saying sales dropped because of the price hike, what happens to everyone who was going on about the Shape Hypothesis and hardware-centric theory lol
Maybe seeing this real-world case made him rethink it, but has he actually issued any correction or apology anywhere yet?
Operating profit progress rate: 60%
And that's with the year-end sales season still ahead.
The blockheads who can't read an earnings report are kicking up noise again.
They already said profit would drop because raw material costs go up starting this month lol
Analysts talk about "missed" or "fell short" based on their own market forecasts, so the company's actual earnings guidance doesn't really factor into their narrative 🥺
On 5ch's game-hardware boards and elsewhere, you sometimes see rumors or folk theories like "PlayStation's ad costs are covered by Sony's head office, so the gaming division's profits are protected" or "the head office is footing the bill." This is a financial/accounting misunderstanding (misinformation).
It's not the head office footing the bill — intercompany transactions get eliminated as unrealized profit. That's basic consolidated accounting.
Yasuda's at least a bit more neutral than a Sony-sympathizer reporter like Mochizuki lol
If the Zelda effect drives overseas sales, it's doable, right?
That's Yasuda's own comment from a few months back, you know.
He's dodging it on purpose, but isn't this really about the impact of piracy (lit. "ware" — cracked/pirated games)?
Got any proof of that? Dr. Google says it's misinformation, though.
Division A sells a ¥100 product to Division B for ¥1,000, then B sells that same product back to A for ¥3,000. Consolidated, that becomes ¥4,000 in revenue, ¥1,100 in cost, ¥2,900 in profit. It's just the same product being passed around inside one company, and both revenue and profit balloon endlessly. So it gets eliminated. That's what "elimination of unrealized profit" means.
Background and Key Points of This Discussion
Nintendo has kept its full-year FY2026 targets unchanged (16.5 million Switch 2 units shipped, 60 million software units), and this quarter’s miss is purely against market expectations — the company’s own plan has not been revised downward. The US price hike took effect on September 1, and the thread was divided on how much of its impact is actually reflected in this quarter’s results yet. One point of debate centers on Yasuda having previously taken the position that “hardware sells on design and play experience, with price and specs being irrelevant” (dubbed the “Shape Hypothesis” in the thread), which raised questions about its consistency with now blaming the price hike. Another centers on the operating-profit comparison with Sony, where posts misunderstanding the basic accounting mechanism of “elimination of unrealized profit” — which offsets intra-group transactions in consolidated accounts — appeared and were subsequently corrected. Judging the results as good or bad from progress-rate figures alone would be premature, and the point that the industry’s second half (the year-end sales season) carries disproportionate weight wasn’t fully addressed in the thread.
*This article is compiled as an excerpt/summary of the 5ch (Hardware/Industry [Geha]) thread “[Sad News] Yasuda: ‘The impact of the US price hike is pronounced — a disappointing result. The year-end sales season won’t be better than last year’.”
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