Nintendo Co., Ltd. announced on Tuesday that it is maintaining its annual operating profit forecast at 3700 billion yen (approximately $24 billion), representing a growth of nearly one-third compared to the previous fiscal year.

The developer of the "Super Mario" games launched the Switch 2 gaming device in mid-2025, which has demonstrated robust initial sales; however, investors are now debating whether this momentum can be sustained.

Nintendo also reaffirmed its annual sales projection for the Switch 2, holding it steady at 19 million units.

Hardware manufacturers are currently grappling with significant price increases for memory chips, a trend largely driven by substantial investments in the artificial intelligence sector.

Despite these challenges, Nintendo is better positioned than many of its competitors to weather the storm, as its "substantial inventory and long-term contracts will shield it from adverse impacts for... several quarters," wrote Jefferies analyst Atul Goyal in a client note issued prior to the earnings release.

The Switch 2 is priced at $449.99 in the United States, while the equivalent Japanese version retails for 49,980 yen (around $320) in Japan. The higher price tag in the U.S. is believed to incorporate current inflationary pressures.

Goldman Sachs analyst Minami Munakata highlighted Nintendo's policy of not selling hardware at a loss, suggesting that "concerns about the Nintendo Switch 2 operating at a loss are somewhat overblown."

Investors have also expressed unease regarding the scarcity of high-profile game titles, such as those from "The Legend of Zelda" series, which historically played a significant role in boosting sales of the original Nintendo Switch.