Nintendo Switch 2 Sales Drop 37% Amid Memory Crisis, Yet Remain 6 Million Ahead of Original Launch

Key points

• Nintendo sold 2.67 million Switch 2 units in the fiscal second quarter, a 41% drop from the same period last year and a 37% decline year-over-year.
• The console is currently 6 million units ahead of the original Switch's sales at the same launch stage, according to VGC data.
• Nintendo raised Switch 2 prices by $50 in the US, Canada, and Japan earlier this year to offset soaring memory costs, but President Shuntaro Furukawa stated no further price hikes are planned.
• The company maintained its fiscal year shipment forecast of 16.5 million units, despite revenue falling to 448.2 billion yen, below analyst expectations.
• The release of 'The Legend of Zelda: Ocarina of Time' remake and a 40th Anniversary console bundle is expected to boost sales in the coming weeks.

Background

The current sales slump follows a strong launch period in June 2025, where pre-orders sold out globally. Recent archive coverage noted that the upcoming Zelda remake had secured over 100,000 physical pre-orders on Amazon, outpacing GTA 6. Additionally, Nintendo recently defended the sales slowdown as a natural stabilization, citing the impact of price hikes and memory shortages, while highlighting the strong reception of the new Zelda title.

How outlets are covering it

CNBC emphasizes the financial impact, noting that revenue and net profit missed analyst estimates due to the price hikes and lack of marquee titles, with industry experts warning that only major hits can sustain hardware sales in the current market. The Verge focuses on the supply chain, highlighting that a major cartridge supplier is shifting production to data centers, exacerbating the RAM shortage, and notes that Nintendo is not planning further price increases. My Nintendo News highlights the comparative success, pointing out that despite the recent drop, the Switch 2 is still 6 million units ahead of the original Switch and outperforming the PlayStation 5 on a launch-aligned basis.

Why it matters

The Switch 2 sales drop signals a broader industry challenge caused by AI-driven demand for memory chips, which is forcing price hikes across all major consoles. Nintendo's ability to maintain its shipment targets despite these constraints will determine if the console can recover momentum during the holiday season, impacting the company's long-term profitability and market share against Sony and Microsoft.

What to watch

Investors are watching the performance of 'The Legend of Zelda: Ocarina of Time' remake and the 40th Anniversary bundle to see if they can reverse the sales decline. Nintendo is also expected to release new Pokémon titles in 2027 to sustain hardware momentum. The company will need to navigate the ongoing memory shortage without further price increases to maintain consumer confidence.