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According to Eurogamer, recent data from tracking firm Circana reveals that the Nintendo Switch 2 has moved 5.9 million units in its first 12 months on sale. This performance places it as the second fastest-selling console in U.S. history, trailing only the Game Boy Advance, which sold 6.5 million units during its debut year 25 years ago.
Nintendo leads growth amid hardware price hikes
The Switch 2 was also identified as the best-selling console in the United States for the month of May 2026. This surge in Nintendo's performance is the primary driver behind a year-on-year increase in total hardware spending, which has risen by more than one third. However, this growth exists alongside a challenging economic landscape where the average price paid for new video game hardware reached $502 USD in May, up from $440 last year.
PlayStation and Xbox face historic sales lows
In contrast to Nintendo's success, Sony and Microsoft reported disappointing figures. PlayStation 5 sales plummeted by 58 percent year-on-year, marking the lowest May total for the platform since the year 2000. While Xbox saw a smaller percentage drop of 12 percent, the report confirms that this figure represents the lowest number of units ever recorded for an Xbox hardware sale in the month of May.
Several factors contributed to these declines, primarily centered on aggressive pricing strategies:
- PlayStation 5 prices rose by 33 percent to reach $672.
- Xbox Series X/S pricing climbed 22 percent to a new average of $524.
- Sony implemented price increases in March, while Microsoft raised Xbox prices again recently.
- Nintendo has confirmed it will also raise the price of the Switch 2 later this year.
Component shortages and AI demand impact costs
Industry analysts point to a persistent component shortage as the root cause of these escalating costs. The high demand for hardware to power AI datacenters has squeezed the supply chain, with Microsoft predicting that component pricing could double again by autumn 2027. This trend suggests that future next-generation machines may face even higher entry barriers for consumers. While the upcoming release of Grand Theft Auto 6 is expected to provide a significant market boost in November, retailers have already expressed concerns regarding whether sufficient stock will be available to meet holiday demand.