After over eight years as Nintendo’s primary console, the Nintendo Switch was succeeded by the Switch 2 June 5. In four months, it has sold 5.82 million units. However, the original switch sold 7.63 million units in this timeframe. By this time, the original switch had also sold nearly 14 million games, whereas Nintendo currently reports only 8.67 million for the Switch 2 at this time. In other words, this new generation is seeing less new console owners, and even fewer games being bought per console.
Many Americans would be eager to cite international “trade wars” currently being stoked by U.S. tariffs: Japan, the home nation of Nintendo and Sony, received a 15% tariff which was announced by the Donald Trump administration April 2, the same day Nintendo first announced the pricing of the Switch 2. From the original Switch’s price of $300, the cost for Americans shot up a staggering 50% to $450. By comparison, a Japanese Switch 2 sells for ¥49,980, equivalent to only $328. While PlayStation has not released an entirely new console since the PS5 in 2020, it sells for $500, whereas its predecessor sold for $400. Additionally, Sony is now pushing its PlayStation 5 Pro for a whopping $750, even though it still sold for a (still outrageous) $700 on launch in November 2024. This means that the console that Sony wants you to buy is 182.5% of the price compared to a single generation before.
However, console prices aren’t even the item that gamers are furious about – It’s the game prices. At the end of the first Switch’s lifespan, the price of games was still comfortably $60; one game, “The Legend of Zelda: Tears of the Kingdom” sold for $70, but consumers seemed to understand. “Tears of the Kingdom” spent a whopping five years in development, easily has 200 hours of content, and was followed by major releases including “Mario vs. Donkey Kong” and “Donkey Kong Country Returns HD” which were only $50, the same price at which Nintendo sold GameCube games in 2001. Because of this, the gaming community was appalled when the Switch 2’s only launch title, “Mario Kart World”, retailed for $80. Now, all first party releases from Nintendo will sell for $70, and bigger-ticket titles are expected to return to $80. The company known for “budget” gaming has become more expensive than PlayStation, which has been catching smoke for years due to putting out its more anticipated titles at $70. Either Nintendo is happily giving up their place as the family-centered seller in the market, or this is the perfect layup for prices across the board to skyrocket.
Of course, there is the third major console which is American-owned: Xbox. 2024 was their worst-selling year ever, and 2025 is nearly set in stone to follow. Microsoft is now expected to drop out of the “console wars” entirely: released alongside the PS5 in November 2020, the Xbox Series X and S have only sold a paltry 33 million units in comparison to their counterpart’s staggering 77 million. October 3, Microsoft increased the price of the consoles by $20, and the price of their coveted Xbox Game Pass subscriptions by up to $10 more per month. While they’re definitely the underdog today, these problems seem minimal in comparison to the changes being made by Microsoft’s Japanese competitors. If Xbox is willing to release games at lower prices and perhaps even walk back on their Game Pass price hikes, they could dominate the Western video game market for the first time in years. However, it is equally likely that Microsoft will follow Sony and Nintendo in further increasing their prices. If this happens, perhaps generations Alpha or Beta won’t grow up with the same access to video games as Gen Z has had, and maybe Gen Z might have to find a new hobby as they transition into adulthood. In this era of scalpers and superfans, the average gamer has lost hope for the market to self-correct. But if any of the big three is willing to make some big sacrifices, they could steer the industry in a way nobody has in decades.
