Key Takeaways
1. Switch 2 sales rebounded, making it the fastest-selling console ever in just 7 months since launch.
2. The installed base of Switch 2 reached 4.4 million units in the U.S., nearly double that of the original Switch.
3. Despite economic challenges, hardware revenue increased by 6% in December 2025, with higher average sale prices for consoles.
4. The PS5 gained ground in European markets due to price cuts, but the Switch 2 remained the top seller in the U.S. for December 2025.
5. Investor confidence in Switch 2 may improve despite Nintendo’s stock decline, with strong sales continuing in Japan.
After some signs of a slowdown, Switch 2 sales bounced back, wrapping up 2025 as the leading gaming system. According to December’s Circana data from the U.S., this handheld device is still the fastest-selling console ever. In just 7 months since its launch, Nintendo’s new hardware is significantly outpacing the sales of both the original Switch and the PS4.
Initial Concerns and Market Performance
There were worries that after a strong launch in June, the Switch 2 was having trouble drawing in buyers. The Game Business noted that its sales lagged behind the original Switch’s November/December 2017 figures by 35%. However, Mat Picatella pointed out that many consumers opted to wait until the end of the holiday season to finalize their purchases.
Impressive Installed Base
When looking at the first 7 months of sales, the new handheld clearly outshines its predecessor. It has an installed base of 4.4 million units in the U.S., which is nearly double that of the original Switch during the same timeframe. This number surpassed the market research firm’s expectations, which had estimated an installed base of 4.3 million units.
Sales Trends and Economic Impact
Switch 2 sales are continuing to grow faster than those of PlayStation consoles, including the PS4. The Sony system must now close a 35% gap from its performance during the period from November 2013 to June 2014.
Even with tough economic times, U.S. consumers showed strong purchasing behavior in December. Hardware revenue increased by 6% compared to 2024, despite retailers selling fewer units. As some systems became pricier, the average sale price jumped by 18%. Gamers also accepted a noticeably higher Switch 2 price compared to the last handheld.
European Market Dynamics
As the year went on, the PS5 overtook its Nintendo competitor in various European markets, such as the UK and Spain. Piscatella suggests that price cuts on PlayStation hardware played a role in this resurgence. Nevertheless, in the U.S., the Sony console once again ranked second in December and for the overall year of 2025.
The recent Circana report might strengthen investor confidence regarding the Switch 2’s future. Nintendo’s stock recently fell to its lowest point since August 2025. However, sales in Japan have remained robust, particularly with the introduction of a more affordable region-free version, showing little sign of weakness.
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