In short: Held, but not as a thesis — "I think of as a cash position that's also hedging my memory position." Nintendo is "super exposed… to memory prices and… they did not go out and contract. They've just been buying things on the spot market for forever." Value investors have pitched it for a decade and "it just hasn't worked out. But I'm not worried about this company going anywhere, I'm happy to just own shares for a while."
Wilde owns Nintendo but doesn't pitch it. She treats it like cash that also acts as insurance: Nintendo buys memory chips at market prices without long contracts, so if memory gets expensive its costs rise — the opposite of her SK Hynix bet.
She notes value investors have pitched Nintendo for a decade without it working, but she is comfortable holding a financially solid company "for a while."
In short: Software cushion. Q1 (June quarter) revenue −10% Y/Y to ¥518B (~$3.3B) still beat, and operating profit surged 151% to ¥143B, nearly double consensus, with net income +54% to ¥147B — but roughly $300M of refunded US tariffs reduced cost of sales, "providing a large one-time boost to profitability," so the margin jump overstates the underlying quarter. Hardware is the soft side: Switch 2 sold 3.8M consoles, −34% against last year's launch quarter, though already 23% of the 16.5M FY27 target, for a 23.7M installed base versus the original Switch's 17.8M a year after its launch. The surprise is the old machine: original-Switch software sales jumped 39% to 34M units against just 9.5M Switch 2 games — Tomodachi Life: Living the Dream at 7.9M and Pokémon Pokopia at 1.3M — "showing that backward compatibility is keeping the 150M+ Switch ecosystem economically relevant even as hardware migrates." Digital sales nearly doubled to ¥133B and hit 62% of software revenue; IP-related revenue more than doubled to ¥35B on The Super Mario Galaxy Movie, already past $1B at the global box office. That richer software/IP mix lifted gross margin 22 points to 54%, "although the tariff refund materially amplified the improvement." Bottom line: FY27 guidance left unchanged (16.5M Switch 2 consoles, 60M Switch 2 games, ¥2.05T revenue, ¥370B operating profit) — "the real test still starts in September, when a price hike takes the Switch 2 to $500 heading into the holiday season." (Recap, not a stance call.)
Nintendo's profits looked spectacular — operating profit up 151% — but a chunk of that is a refund. Roughly $300 million of US import tariffs Nintendo had already paid came back and was credited against costs. That's real money, but it happens once; the underlying business did not suddenly become 2.5 times more profitable.
The hardware story is soft. Switch 2 sold 3.8 million consoles, a third fewer than the original Switch managed in the equivalent launch quarter. That sounds bad, but the installed base is still ahead — 23.7 million machines a year in, versus 17.8 million for the first Switch at the same point.
The interesting part is what people are actually playing. Games for the old Switch sold 34 million copies, up 39%, while Switch 2 games sold only 9.5 million. Because the new console plays the old console's games, the 150-million-strong existing audience keeps buying software even while the hardware generation turns over. In other words, the old library is cushioning the transition — which is exactly what a console maker wants during a changeover, since software carries far better margins than hardware.
Two other quiet improvements: 62% of game sales are now downloads rather than boxes (no manufacturing, no retailer cut), and revenue from licensing Nintendo characters more than doubled after The Super Mario Galaxy Movie passed $1 billion at the box office.
Management left its full-year targets untouched. The real test comes in September, when the Switch 2's price rises to $500 just as holiday buying begins — a price increase into the most important quarter of the year. That, plus the one-off tariff refund inflating this quarter, is why the read here is neutral rather than positive. Analysis, not a recommendation.
Nothing matches this filter.
Verbatim excerpts from the public transcripts (auto-pulled at each mention's timestamp, lightly cleaned). Timestamps link into the video; "source page" opens that commentator's full analysis at this row. Click a mention's header line to expand it (one open at a time). For personal study — not investment advice.