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Nintendo has announced a substantial surge in quarterly profits, driven significantly by a tariff refund from the United States government. The Japanese gaming company reported earnings of ¥147.4bn (£694m) for the three months ending in June, representing a 53.5% increase and substantially surpassing analyst expectations of ¥77.8bn.
The profit growth comes after the U.S. Supreme Court ruled in February that former President Donald Trump’s “liberation day” trade levies were unlawful. The Trump administration subsequently refunded approximately $100bn in tariffs that had been collected prior to the court’s decision. However, Nintendo has not disclosed the exact amount of its refund, choosing to keep the figure confidential at this stage.
Despite the impressive profit figures, Nintendo’s overall sales declined 10% year-over-year to ¥517.8bn. The company’s Switch 2 console, launched the previous summer, maintained strong sales momentum alongside popular titles including Yoshi and the Mysterious Book and Pokémon Pokopia. The earnings announcement saw Nintendo’s Tokyo-listed shares rise 2.87% on trading day.
The company faces ongoing scrutiny, with a class action lawsuit filed against it last month alleging that customers paid inflated prices due to tariffs, despite Nintendo later benefiting from government refunds. Additionally, the Trump administration has recently imposed fresh tariffs on more than 80 countries, including Japan, potentially creating further headwinds for the gaming giant.
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Originally reported by Theguardian →
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