Japanese game maker Nintendo has announced a substantial increase in profits for the three months ending in June, with earnings rising 53.5% to ¥147.4bn (£694m). This figure significantly exceeded expert forecasts of ¥77.8bn.
The surge in profits was largely attributed to a refund on tariffs imposed by Donald Trump, which the US Supreme Court ruled illegal earlier this year. The Trump administration has refunded approximately $100bn from the tariffs collected before the court's decision.
While Nintendo's Switch 2 console and games like Yoshi and the Mysterious Book, Star Fox, and Pokémon Pokopia maintained strong sales, the company experienced an overall 10% drop in revenue compared to the same period last year, reaching ¥517.8bn.
Nintendo's Tokyo-listed shares saw a 2.87% increase on Thursday following the earnings announcement. The company had filed a lawsuit seeking a full refund plus interest after the Supreme Court ruling, though it has not confirmed the exact amount of the refund received.
Nintendo is currently facing a class action lawsuit from customers who claim the company hiked prices due to tariffs but then benefited from the refunds. The company's lawyers have described this lawsuit as “meritless.”
A new round of tariffs imposed by the US president on over 80 countries, including Japan, could pose fresh challenges for companies like Nintendo. However, a coalition of 25 US states is suing the Trump administration over these new levies.