Switch 2 Sales Slump? US Console Market Sees Worst July Since Pandemic as Sales Halved

Market research firm Circana has released data showing that Nintendo's Switch 2 sold less than half of its year-ago volume in the US during July 2025, significantly dragging down the overall video game console market. Spending on gaming hardware in the US declined 29% year-over-year to $282 million, marking the lowest level since the pandemic-era supply chain disruptions limited mass console availability.

Hardware shipment volumes dropped by 39%, but the average selling price rose 16% to $542 due to increasing costs of memory and other components.

Nintendo launched the Switch 2 last summer, briefly reigniting consumer enthusiasm for home consoles with strong initial sales. However, rising memory and component costs, combined with the absence of a true system-selling blockbuster title from flagship franchises like Mario or The Legend of Zelda, have gradually cooled sales momentum.

Mat Piscatella, an analyst at Circana, noted that year-over-year growth rates continue to be influenced by the record-breaking launch of the Switch 2 in June 2025. Yet current challenges extend beyond a high comparison base. The RAM and component shortage crisis has driven up hardware prices, clearly suppressing sales velocity for Sony's PlayStation 5 and Microsoft's Xbox Series X|S. The Switch 2 may also face a price increase in the near future.

Both Sony and Microsoft’s flagship consoles are now in the latter stages of their product cycles, prompting strategic shifts. Microsoft has appointed a new CEO to lead the transformation of its Xbox division, while Sony is focusing on acquiring more game content and intellectual property.

Nintendo, which heavily relies on a steady stream of new game releases to attract players, saw 'Splatoon Raiders' enter the US game revenue rankings in July, with 'Tomodachi Life: Living the Dream' maintaining a top-ten position. Nevertheless, these software successes have not been sufficient to reverse the downturn in hardware sales.