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In brief: As doubt lingers over the future of Microsoft's console business, and controversy over the end of physical media clouds Sony's, Nintendo wants investors to know its hardware division is still growing. The company's Q1 fiscal 2027 report points to strong mainstream software sales, a hit tie-in movie, and $300 million in tariff refunds that customers will never see.
The Switch 2 has sold more than 23 million units in its first year on the market, well ahead of its predecessor's roughly 17 million over the same span. The hybrid console has now also outsold the GameCube's entire five-year run in a single year – a reminder of how far Nintendo's hardware business has come over the past two decades.
The quarter ending June 2026 did show a more than 30% YoY drop in hardware sales, but that's expected: the year-ago quarter included the Switch 2's explosive launch.













