M&A strategy centers on organic growth
Nintendo told investors at its Corporate Management Policy Briefing that it would "not rule out the possibility of further mergers and acquisitions," but that its current "priority is to organically expand the organisation" so new staff can absorb Nintendo's "creative culture." President Shuntaro Furukawa has repeatedly tied this approach to preserving internal expertise, having previously argued that bringing in people without "Nintendo DNA" would not benefit the company, and that acquisitions risk diluting the firm's creative approach unless the target shares it. The Mario maker has made only a handful of acquisitions in recent years: Shiver Entertainment from Embracer in May 2026, Dynamo Pictures (now Nintendo Pictures) and SRD in 2022, and Next Level Games in 2021.
Switch 2 surpasses GameCube lifetime UK sales
Industry analyst Christopher Dring confirmed that the Nintendo Switch 2 has now moved past the GameCube's lifetime sales total in the UK, roughly a year after the console launched in June 2025. Nintendo has not released updated official figures, but late-2025 Circana data had the Switch 2 at around 737,000 UK units versus the GameCube's lifetime tally of about 1.1 million. The Switch 2 has sold faster than the original Switch during its launch period, though the original Switch remains Nintendo's biggest UK success at more than 7 million units since 2017, leaving the newer console a long road ahead if it is to match that record.
Zelda remake progress and Xenoblade pipeline
Nintendo has reaffirmed that the Zelda: Ocarina of Time remake for Switch 2 is still launching in 2026, after the title received an ESRB rating of Everyone 10+ for "Animated Blood" and "Fantasy Violence," content descriptors that mirror the 3DS version. An ESRB rating typically signals that a release-date announcement is imminent, and Nintendo has not ruled out an August or September Direct. Separately, the Switch 2 Edition of Xenoblade Chronicles 2 went on sale digitally on July 30, 2026, priced at $69.99 / £58.99, with a $9.99 / £7.99 upgrade path for existing owners and a physical release set for October 1, 2026. The Switch 2 edition runs at 4K and 60fps in docked mode and adds a new "Merc Assault" mode plus a Xenosaga crossover character. A physical Switch 2 Edition of the original Xenoblade Chronicles launched the same day, completing Nintendo's four-game Switch 2 refresh slate ahead of Xenoblade Chronicles 3's December 3, 2026 release.
US contractor restructuring at Nintendo of America
Nintendo of America has cut roughly 120 contractor positions at its Washington-based games and hardware testing team, according to Kotaku's reporting based on former and current contractors. The company confirmed a Product Testing reorganization aimed at "driving greater global integration in game development efforts" and "better aligning" the unit with interregional procedures, with affected contractors receiving severance and transition assistance. Nintendo said the move would also create "a significant number of new full-time employee positions," though Kotaku's sources indicated those going full-time appear to be moving out of software testing. The report sits against a backdrop of strained relations with Nintendo's contractor workforce, including a 2022 settlement in which a QA contractor won $26,000 after claiming they were fired for asking about unionisation.
US video game spending context
The restructuring comes amid a broader shift in US video game spending. Circana reported that June 2026 consumer spend on games, consoles and accessories fell 21% year-over-year to $4.49 billion, down from $5.69 billion in June 2025. Circana senior director Mat Piscatella attributed nearly all the drop to June 2025 having been the strongest hardware month on record, driven by the Switch 2 launch. Switch 2 still led US hardware sales in June 2026 despite a 79% year-over-year decline against its own launch month; Xbox was the only console platform to post hardware growth, more than doubling year-over-year, while PlayStation 5 hardware spending fell 19%.
Salary policy clarification
President Furukawa separately clarified that Nintendo's recent 10% salary increase in Japan took effect in 2023, not recently as a mistranslated post on X implied, and that the company has continued to adjust its compensation system since then. He said further salary increases, including for starting salaries, were implemented in April 2026, with Nintendo's approach focused on industry and broader social trends rather than business-performance swings.
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