Japan’s Nintendo (7974.T), Tuesday reported a 23% increase in quarterly profit on strong Switch 2 sales and said rising memory chip prices are not affecting profitability this year.

The “Super Mario” maker maintained its annual earnings and hardware forecasts, predicting 19 million Switch 2 sales. “Despite a lack of exclusive blockbusters, Switch 2 sold like hotcakes over the holidays,” said Kantan Games founder Serkan Toto.

The Kyoto-based game business released the Switch 2, the successor to the massively successful Switch, in mid-2025, and investors discussed its early sales.

Due to increased AI investment, memory chip prices are rising for electronics manufacturers.

Nintendo President Shuntaro Furukawa told an earnings briefing that the price jump is not affecting Nintendo’s performance this year, but if it continues beyond projections and persists, it could hurt profitability.

The corporation reported operating profit of 155 billion yen ($995 million) in the latest quarter and predicted 370 billion yen for the year, up roughly a third from the previous year.

The Switch 2 costs $449.99 in the US, compared to 49,980 yen ($320) in Japan. The increased U.S. price reflects inflation.