1 year into the Switch 2, we might’ve seen the top of the console market

Nintendo's Switch 2 has become the fastest-selling console in history with 19.9 million units moved in its first year, but industry headwinds including tariffs, rising memory costs, and ballooning game budgets suggest it may be the last reasonably priced mass-market console. Nintendo forecasts a 17% drop in Switch 2 sales for the current fiscal year, while competitors delay next-generation hardware and raise prices, signaling that the console market may have peaked.

1 year into the Switch 2, we might’ve seen the top of the console market The Switch 2 launched on this day in 2025. Amid a rough year for consoles, Nintendo has logged a good one. Nintendo’s https://robinhood.com/us/en/stocks/NTDOY/?source=sherwood Switch 2 could be the last console of its kind. One year in, the handheld is the fastest-selling console in history, with 19.9 million units moved as of Nintendo’s most recent quarter. But as the industry continues to reel from AI’s “ RAMpocalypse https://sherwood.news/business/higher-prices-lower-sales-video-game-giants-forecast-the-impact-of-the-memory-surge/ ,” lingering tariffs, ballooning game budgets that have squeezed margins, and slowing “ black hole https://sherwood.news/culture/eas-usd55-billion-megadeal-will-ripple-across-the-gaming-industry-and-cause/ ” engagement https://sherwood.news/business/fortnite-maker-epic-is-laying-off-1-000-employees-amid-engagement-downturn/ , the Switch 2 may be the last of a dying breed: a reasonably priced, mass-market console. The Switch 2’s $450 launch price, which many initially feared too high, at 50% more than its predecessor, now looks to have landed in a Goldilocks zone following multiple https://sherwood.news/business/microsoft-is-hiking-us-xbox-prices-for-the-second-time-in-five-months/ price hikes https://sherwood.news/culture/as-of-tomorrow-all-new-ps5s-will-cost-usd50-more-in-the-us/ from Microsoft’s https://robinhood.com/us/en/stocks/MSFT/?source=sherwood Xbox, Sony’s https://robinhood.com/us/en/stocks/SONY/?source=sherwood PlayStation 5, and, most recently, Valve’s Steam Deck https://www.polygon.com/steam-deck-new-price-hike-oled-1tb-storage-valve/ . Launching at the peak of tariff chaos also seemed initially unfortunate https://sherwood.news/business/nintendos-switch-2-will-probably-be-hit-with-at-least-22-tariffs-wedbush/ , though arriving months before the memory crunch truly started now seems like a stroke of luck in hindsight. With memory prices soaring, Valve’s Steam Machine has been delayed to this summer, Sony’s PS6 is reportedly being pushed back https://sherwood.news/business/sony-is-reportedly-considering-pushing-the-playstation-6-to-2028-or-2029-as/ a year or two, and Xbox’s Project Helix — which could be a PC-console fusion of sorts — won’t ship https://www.theverge.com/games/893119/xbox-project-helix-jason-ronald-gdc-2026 “alpha” versions to developers until next year. The years ahead seem to be shaping up to be even less friendly to the business, with consoles’ affordability advantage dwindling, mobile and cloud gaming advancing, game prices climbing https://sherwood.news/markets/take-two-climbs-on-bofa-note-gta-6-80-dollar-price/ , and attention being further spread across different forms of entertainment. As many have pointed out https://www.businessinsider.com/price-gaming-inflation-xbox-playstation-nintendo-switch-2026-5 : gaming appears to be heading toward being a luxury activity. Nintendo will hike https://sherwood.news/markets/nintendo-falls-as-switch-2-sales-forecast-disappoints/ the cost of the Switch 2 by $50 in September, and is forecasting 16.5 million unit sales of the handheld for its current fiscal year — a 17% drop from the year prior. More expensive future consoles that may have more overlap with PCs are unlikely to sell at the same pace — meaning the Switch 2 may be the top of the console business as we know it.