Nintendo Switch 2 Finishes First 12 Months on Sale as Second Fastest-Selling Hardware in U.S. History, PS5 Sales Collapse Following Price Rise

Nintendo Switch 2 Achieves Record Sales in First Year, PS5 Struggles After Price Hike

The Nintendo Switch 2 has wrapped up its first 12 months on the market, achieving a remarkable milestone as the second fastest-selling hardware in U.S. history. New data from Circana highlights a 5.9 million U.S. install base for the Switch 2 after one year. Only the Game Boy Advance, which sold 6.5 million units in its first year, outpaced it, according to Mat Piscatella, Senior Director of Video Games at Circana.

Nintendo has emphasized that the Switch 2 is its fastest-selling hardware globally, despite some challenges in the latter half of 2025 in Western markets. In May, the company noted that it anticipated selling fewer Switch 2 consoles during the second year due to a more concentrated sales period in the launch year compared to previous systems. Notably, Nintendo is set to increase the Switch 2's price by $50, raising the console’s cost to $499.99 on September 1.

Price Increases Impact Console Sales

Perhaps in response to the price increase announcement, Switch 2 sales surged in May. According to Piscatella, hardware spending for May 2026 increased by 38% compared to the previous year, reaching $249 million. This surge was partly due to the Nintendo Switch 2, which countered a 43% year-on-year drop in PS5 spending (and a 58% dip in unit sales) caused by recent price hikes. Meanwhile, Xbox Series hardware spending grew by 7% compared to the same period last year, though unit sales fell by 12%.

For May and year-to-date 2026, the Nintendo Switch 2 remained the best-selling hardware platform in both units and dollars. The PS5 followed in both categories, but the drop in sales was significant. In fact, PlayStation hardware unit sales hit their lowest May total since May 2000, while Xbox hardware unit sales reached their lowest ever recorded for a May month. These declines are likely tied to price increases, with PlayStation raising prices in April and Microsoft announcing similar hikes for the Xbox Series X and S on August 1, citing an ongoing “components crisis.”

Rising Prices Across the Board

The average price paid for a new video game hardware unit in May reached $502, up 14% compared to the same period last year ($440), according to Circana. The PlayStation 5 average price increased by 33% year-on-year to $672, while the Xbox Series saw a 22% increase to $524.

All three major console manufacturers are facing mounting pressure regarding hardware pricing. Reports suggest that Sony’s PS6 and Microsoft’s Project Helix could launch around $1,000. Earlier this month, Sony stated it had yet to decide on the PS6’s launch date or price, as memory shortages continue to affect production. Meanwhile, Microsoft’s new CEO, Asha Sharma, mentioned that the rising costs of consoles would require radically different business models for the next generation. She also noted that the industry has reached a point where it may be difficult to imagine mass audiences being able to afford thousands of dollars for a new console generation.

Future Outlook for the Switch 2

Looking ahead, Nintendo expects to sell 16.5 million Switch 2 units in the coming financial year, down from the 19.86 million units sold since its launch. However, even with this projected decline, cumulative Switch 2 sales after 22 months are expected to surpass those of the original Switch at the same stage in its life cycle. Whether the Switch 2 can replicate the long-lasting success of its predecessor remains to be seen.