Nintendo's business is experiencing unprecedented growth due to Switch 2
The Nintendo Switch 2 has made a stunning debut, selling over 6 million units globally within just seven weeks of its launch in early June 2025. This phenomenal success has made it the fastest-selling console in Nintendo's history, surpassing even the company's lofty expectations.
In the first four days alone, an impressive 3.5 million units were sold, setting a new record for Nintendo hardware launches. The demand for the Switch 2 has been so strong that shortages have occurred in various countries, prompting Nintendo to ramp up production.
A regional sales breakdown reveals that approximately 1.27 million units were sold in Japan, 2.08 million in the Americas, 1.34 million in Europe, and 1.13 million elsewhere. Accompanying the hardware sales, Switch 2 software sales reached about 8.67 million units in the same period, with the launch title Mario Kart World leading the charge, selling around 5.63 million copies, many bundled with the hardware.
Financially, this strong hardware and software performance has contributed to Nintendo’s overall sales of approximately 572.3 billion yen (~$3.8 billion) in the three months ending June 30, 2025. Operating profit grew by 4% to 56.9 billion yen (~$378 million) despite a 29.5 point decline in profit margins due to the lower profit per unit on the new hardware.
Nintendo maintains its forecast to sell 15 million Switch 2 units by the end of the fiscal year ending March 2026 and expects 45 million software units sold for the same period.
Interestingly, the original Nintendo Switch has continued to sell well post-launch of the Switch 2, edging total lifetime hardware sales to 153.1 million units and sustaining more than 100 million annual active users, providing a healthy installed base for Nintendo.
The Switch 2 is priced significantly more expensive than the original model, with prices starting at around 470 euros. However, the improved image quality and increased computing power offer a smoother gaming experience, making it a significant upgrade to the console eight years after the original was released.
Despite the increased demand, shortages and waiting times for the Switch 2 persist in many countries, indicating continued demand. The sales in the last quarter increased by more than double compared to the previous year, with Nintendo's quarterly sales jumping by 132 percent year-on-year to 572.36 billion yen (approximately 3.34 billion euros). Profit grew by 18.6 percent to 96 billion yen (approximately 560 million euros) for Nintendo in the same quarter.
Nintendo continues to insist that full-fledged games featuring popular characters like Super Mario can only be played on its own consoles. The company has also released a new racing game from the "Mario Kart" series that is exclusive to the Switch 2, further bolstering its appeal.
The strategy of selling consoles that can be used both on the go and connected to a television has contributed to the success of various Switch models, with over 150 million units sold. The Switch 2's launch coincides with a change in the industry towards game streaming services, positioning Nintendo as a key player in the traditional console market.
People are eagerly purchasing the new technology, with many buying gadgets like the Nintendo Switch 2, causing shortages in various countries. The success of the Switch 2 has led to an increase in Nintendo's overall sales, as their financial numbers show a rise in profits and software sales, particularly for titles like Mario Kart World.
