Nintendo Switch 2 Is Biggest Console Launch In History As Sales Continue To Soar
Nintendo is raising its Switch 2 sales forecast by millions of units after the second-generation handheld set an historic pace in console sales with 10.36 million systems sold in the first four months. For context, the first generation Switch, which ranks as a massive success in its own right, sold less than half as many units in its first six months on the market.
It was always a safe bet that the Switch 2 would attract a large audience, given how well received the Switch 1 was by gamers. However, shattering sales records en route to become the fastest-selling console launch in history was not always a given, considering the price increase compared to the Switch 1. To wit, the Switch 2 debuted at $449 for the standalone console, and $499 for a bundle that includes Mario Kart World, compared to the Switch 1 debuting at $299.
Even the Switch OLED with an upgraded display and double the storage launched for $100 less than the Switch 2 at $349. Nintendo also launched a Switch Lite at $199 for the previous generation.
The higher launch price for the Switch 2 is proving a savvy move from a business perspective, as it played a pivotal role in Nintendo more than doubling its net sales year-over-year.
"Hardware sales increased significantly in this half-year period due to the launch of Nintendo Switch 2. The fact that Nintendo Switch 2 has a higher individual unit price than Nintendo Switch also contributed to the increase in net sales, and our dedicated video game platform business sales increased by 119.7% year-on-year to 1,066.1 billion yen," Nintendo stated in its latest earnings report (PDF).
The higher launch price wasn't solely about increasing the bottom line, it also stemmed from higher production costs and presumably tariffs considerations (which led to sweeping price hikes this past summer). According to Nintendo, the Switch 2 has a lower profit margin compared to the Switch 2, which resulted in a profit margin decline of 24.6 points to a still-healthy 36.2%.
Source: Nintendo
Switch 2 sales have been so good that Nintendo increased its full-year forecast to 19 million units, which is a 4 million increase (or 26.7% jump) from its previous forecast. Nintendo also increased its Switch 2 software (read: games) forecast to 48 million units, which is up 3 million from before.
The timing couldn't be better for Nintendo, either. We're heading into the critical holiday shopping season, so the historic pace should continue for at least another quarter. Additionally, it's no longer difficult to track down a Switch 2 console in stock from a first-party seller. You can find the Switch 2 for $449 on Amazon, and the Switch 2 + Mario Kart World bundle for $499, both at MSRP.
Nintendo's Switch 2 Success Is Also A Win For NVIDIA
For as much credit as Nintendo deserves for the wild popularity of its Switch 1 and now its Switch 2 console, it's worth noting that both systems run on NVIDIA hardware. For the Switch 2, NVIDIA's custom processor ups the ante with a GPU featuring dedicated RT cores and tensor cores, giving the latest-generation handheld a big boost in image fidelity and AI-driven enhancements.
The upgraded NVIDIA guts enabled Nintendo pitch higher resolution and faster gaming, with the Switch 2 supporting up to 4K (docked) and up to 120 frames per second (handheld mode, 1080p). Nintendo's newest handheld also benefits from high dynamic range and AI upscaling.
"With 1,000 engineer-years of effort across every element — from system and chip design to a custom GPU, application programming interfaces (APIs) and world-class development tools — the Nintendo Switch 2 brings major upgrades," NVIDIA stated in a blog post when Nintendo unveiled the Switch 2 earlier this year.
According to NVIDIA, the Switch 2 delivers 10x the graphics performance of the Switch 1, and does it while running efficiently.
Beyond the technical prowess, the Switch 2 (and before it, the Switch 2) has given NVIDIA a major gaming market outside of PCs.
