Japan’s Nintendo on Tuesday maintained its annual operating profit forecast of 370 billion yen ($2.4 billion), an increase of nearly a third over the previous financial year.

The “Super Mario” maker launched its Switch 2 gaming device in mid-2025 with robust early sales, but investors are debating whether that momentum can be maintained.

The Kyoto-based gaming company also maintained its annual sales forecast for the Switch at 2 of 19 million units.

Nintendo, whose Switch 2 follows the wildly popular Switch, has had to navigate supply chain disruptions caused by US President Donald Trump’s trade war.

Hardware manufacturers are also now grappling with sharply rising prices for memory chips amid booming investment in artificial intelligence.

That said, Nintendo is better placed than its competitors to cope, and its “sizable inventories and long-term contracts will shield it for … several quarters,” Jefferies analyst Atul Goyal wrote in a client note ahead of earnings.

The Switch 2 is priced at $449.99 in the United States, far more than the Japanese language system sold in Japan for 49,980 yen ($320). The higher US price is seen as taking into account the current inflationary environment.

“It would be harder for Nintendo to raise prices than Sony as the Switch 2 is not a high-end product,” said Serkan Toto, founder of the Kantan Games consultancy.

Goldman Sachs analyst Minami Munakata noted that Nintendo has a policy of not selling hardware at a loss and said, “concerns about the Nintendo Switch 2 becoming unprofitable are overdone.”

Investors have also been fretting about a lack of high-profile titles, such as games from the “The Legend of Zelda” series that helped drive Switch sales.

Upcoming titles include “Mario Tennis Fever”, which is due for release next week.