Nintendo reported first-quarter results on Thursday that topped revenue and profit estimates, even as Switch 2 console hardware sales fell 34.4% from the year-ago period to 3.82 million units.
Revenue for the quarter ended June 30 came in at 517.8 billion yen
That topped analyst expectations of 444.96 billion yen, according to CNBC. Net profit rose 53.5% year-over-year to 147.4 billion yen, beating analyst expectations of 78.30 billion yen. Operating profit climbed 150.5% to 142.5 billion yen, the company said.
A key contributor was roughly $300 million in refunds of tariffs levied under the International Emergency Economic Powers Act, which Nintendo recorded as a reduction of cost of sales. The company said those tariff costs had been borne by Nintendo rather than passed on to consumers through product prices. The year-ago quarter marked the Switch 2’s launch, making the hardware comparison difficult.