The traditional video game console market is facing a stark reality check, with new data revealing a dramatic slump in US consumer interest, highlighted by a disappointing Christmas for Nintendo's latest hardware.
A Weaker-Than-Expected Holiday Season
Despite the high-profile launch of the Nintendo Switch 2 in June 2025 and reduced competition for the PlayStation 5, last November was the worst on record for console hardware sales in the United States. This downturn comes even as Nintendo enjoyed a relatively good year in the UK.
According to industry analysis from The Game Business, US sales for the crucial November and December period were down approximately 35% compared to 2017, when the original Nintendo Switch launched. While the Switch 2 arrived in June versus the Switch 1's March debut, making a direct comparison imperfect, the scale of the decline is significant.
Regional Variations and Launch Line-Up Challenges
The picture is not uniformly bleak globally, but it reveals shifting market dynamics. In the UK, Switch 2 sales for the final two months of 2025 were 16% lower than the Switch 1's equivalent period. However, when combined with ongoing Switch 1 purchases, overall Nintendo hardware sales actually rose by 7% compared to 2017.
Intriguingly, the UK – traditionally Nintendo's weakest major international market – outperformed France over Christmas, where Switch 2 sales were more than 30% lower than the original's first year. This reversal of norms suggests established market behaviours are changing.
Analysts point to the Switch 2's launch line-up as a factor. Its major titles, Mario Kart World and Donkey Kong Bananza, launched in the summer, leaving the controversial Metroid Prime 4 as the key first-party release before Christmas. This contrasted with the original Switch's steady stream of hits culminating in the holiday blockbuster Super Mario Odyssey.
Broader Industry Pressures and an Uncertain Future
The issues extend far beyond Nintendo. Sales are down for every console format in the US, where rising prices are biting hardest. Soaring costs for components like RAM, driven by factors including tariffs and demand from the AI sector, are squeezing manufacturers and consumers alike.
Chris Dring of The Games Business notes the Switch 2's first-year software was more attuned to Japanese tastes, with titles like Hyrule Warriors and Kirby Air Riders failing to resonate in the UK. With no major Western-focused titles confirmed for 2026, the narrative may be hard to shift.
If the US market continues to disappoint, major publishers including Nintendo may be forced to reassess their priorities, potentially focusing more on emerging markets like China and India. The core challenge remains economic: manufacturers face a choice between passing on higher component costs to consumers or accepting slimmer profits.
