Switch 2 Leads US Console Sales Slump in Worst July Since Covid

Nintendo Co.’s Switch 2 sales in the US this July were less than half what they were the same month a year ago, leading an industrywide hardware decline, according to Circana.

The far-reaching impact of elevated memory prices has pushed up the cost of each console and even the debut of several hit new games couldn’t forestall a big drop in console sales, the researchers found.

Game hardware spending in the US fell 29%, to $282 million, which was the lowest tally since the Covid pandemic snarled supply chains and restricted the wide availability of consoles. Unit shipments fared even worse, as they came down by 39% while prices were 16% higher, reaching a $542 average price, Circana said.

Nintendo sparked a revival in excitement for home gaming with its Switch 2 debut last summer, and its new platform got off to a fast start. But the increase in component costs and the absence of a true must-have title from the Mario or Zelda franchises have hurt its performance since then.

“The market comparables continue to be impacted by the record-setting June 2025 launch of Nintendo Switch 2. However, the challenges extend far beyond simple cyclicality,” said Mat Piscatella, director at Circana. “Higher hardware prices driven by the RAM and component crisis have significantly impacted the selling rates of both PlayStation 5 and Xbox Series, with a price hike for Nintendo Switch 2 hardware coming.”

PlayStation maker Sony Group Corp. and Xbox owner Microsoft Corp. are both much deeper into the life cycles of their flagship consoles and preparing strategic shifts. Microsoft has appointed a new chief executive officer to oversee a transition of the Xbox group, while Sony’s moving its focus to acquiring more content and intellectual property rights.

Nintendo, the console maker most heavily reliant on churning out regular new attractions for players, delivered a new entry to the US top-grossing games chart in July with Splatoon Raiders. Its Tomodachi Life: Living the Dream remained in the top 10 during the month.