Nintendo first-quarter profit falls 10.2%, below estimates, despite growing Switch sales

Key Points
  • Nintendo sold 2.1 million Switch consoles in Q1.
  • Maintained FY Switch sales forecast of 18 million units.
  • Operating profit 27.4 billion yen vs 30.5 billion yen a year earlier.
  • Nintendo to launch low-cost Switch device in September.
A visitor plays 'Mario Kart 8 Deluxe' on a Nintendo Switch during the new console's unveiling on January 13, 2017.
Chesnot | Getty Images

Japan's Nintendo Co Ltd said on Tuesday operating profit fell 10% in the three months to June, below market expectations, despite stronger sales of its Switch console.

Operating profit in the first quarter was 27.4 billion yen ($252.26 million). That compared with the 40 billion yen average of 10 analyst estimates compiled by Refinitiv.

Nintendo said it sold 2.1 million Switch consoles in the period, bringing the total install base to 36.9 million units.

The Kyoto-based gaming company maintained its full-year forecast of 18 million units for the year ending March.