Nintendo Switch 2 Sells Over 23 Million Units in First Year, Outpacing the Original Switch

The Nintendo Switch 2 sold more than 23 million units in its first year, ahead of the original Switch's roughly 17 million in the same period, according to Nintendo's Q1 fiscal 2027 report.

The company also disclosed $300 million in tariff refunds, strong software sales, and a $1 billion box office result for its Super Mario Galaxy tie-in movie. The Switch 2 has outsold the GameCube's entire five-year run in a single year. Net profit climbed 53% year over year.

Nintendo is facing a customer lawsuit over the tariff refunds, arguing it has no obligation to compensate buyers who paid tariff-era prices.

Nintendo Switch 2 Sales, Software, and Tariff Refunds

The Switch 2's 23 million first-year units put it well ahead of its predecessor's pace. The quarter ending June 2026 showed a more than 30% year-over-year drop in hardware sales. This decline is expected because the year-ago quarter included the Switch 2's launch surge.

Software sales rose across both platforms. Switch 2 game sales increased 9% year over year, while original Switch software sales jumped 38%. Tomodachi Life was likely the driver, selling more than 8 million copies between its April launch and early August.

Nintendo disclosed $300 million in refunds after the US Supreme Court ruled the Trump administration's 2025 tariffs illegal. The government has paid out more than $80 billion of the roughly $166 billion it owes manufacturers and retailers, including Nintendo, Amazon, Walmart, Sony, and Apple.

Nintendo is fighting a lawsuit from customers demanding a share of those refunds. The company argues it has no obligation to compensate buyers who willingly paid tariff-era prices.

It kept the Switch 2's $450 launch price intact despite steep tariffs on its Vietnamese manufacturing, even after Vietnam was briefly hit with a proposed 46% rate.

Other companies are handling their refunds differently. Apple plans to funnel its $2.2 billion refund into domestic manufacturing, while Amazon, Walmart, BJ's, and Arctic have said they will return some of the money to consumers in various forms.

Nintendo’s Movie Success and What’s Still Unclear

Nintendo also highlighted The Super Mario Galaxy Movie, which opened in April and has since crossed $1 billion at the box office. A live-action The Legend of Zelda movie is due in 2027.

Nintendo has not indicated whether the customer lawsuit over tariff refunds will affect its stance. It maintains it is not obligated to pass the $300 million to buyers.

The company has not detailed full-year Switch 2 sales projections or confirmed further pricing decisions tied to the remaining tariff situation. The outcome of the refund lawsuit and whether it sets any precedent for the other named companies has not been determined.