Switch 2 Sales Falling: What Went Wrong With Nintendo’s Strategy

Nintendo Switch 2 is selling poorly in stores, with fully stocked shelves during the peak holiday season and worse sales than the aging PS5. It appears that Nintendo's recent actions are beginning to show consequences, as the Switch 2 abandons many of the reasons players enjoyed Nintendo's approach in the first place.

Before we jump into the unprecedented business decisions Nintendo made with the Switch 2, we want to break down the reports that indicate the system is struggling, because they are quite interesting.

According to nintendolife.com, the headline reads: "The US suffered its worst November since 1995 in terms of hardware sales."

1.6 million hardware units were sold across all platforms in the US during November.

While 1.6 million sounds like a lot for one month, November is typically one of the biggest months for video game console sales ahead of the holiday season. So having only 1.6 million total units sold across the entire market is actually very low.

We also notes another interesting detail: a closer look at the data shows that the PS5 beat the Switch 2 to become the highest-selling platform in November. That is extremely strange because the Switch 2 was not even 6 months old at that time, while the PS5 is over 5 years old. It makes no sense for the PS5 to outsell a brand-new Nintendo console in the same year it launched—unless something changed. And something definitely did.

When we look at the facts, it becomes clear that Nintendo changed its entire business model in ways that don't align with what fans wanted. One major shift with the Switch 2 is the console's price.

Many people believe the $450 price of the Switch 2 is not a bad deal, and we would agree. The hardware price itself is not the core mistake. The problem lies in the pricing model. Even if the console is reasonably priced, it is the only major Nintendo system ever released at $300 or more. Only the third piece of Nintendo hardware to reach that price, behind the Switch OLED and the deluxe Wii U.

The issue is that Switch 2 is far more expensive than any previous Nintendo console, conflicting with Nintendo's long-standing identity as the "budget gaming company." Fans could always rely on Nintendo consoles being cheaper than the competition. That is no longer the case.

Even if you assume the PS5 is more expensive, you're only partially correct. PlayStation routinely runs sales throughout Black Friday and much of the holiday season—not only on games but also on hardware—something Nintendo never does.

This explains the unusual situation we see now and why the PS5 sold better than the Switch 2 in November.

On Best Buy's site, Switch 2 is listed at $449.99, and the Switch 2 + Mario Kart Worlds bundle is also $449.99, likely discounted by the retailer only to clear out stock. But when you check listings for new PS5s, the story changes completely.

Standard PS5 Slim is discounted by $100, bringing it down to $449.99, the same price as the Switch 2. PS5 Digital Edition is $399.99, making it cheaper than the Switch 2. A PlayStation home console being cheaper than a Nintendo handheld is extremely unusual.

We believe this reflects a disconnect between Nintendo and its user base. And there is more evidence.

At the end of a console generation, companies usually discount older hardware. Nintendo, though known for rarely offering discounts, still did so in the past. For example, when the 3DS was discontinued 6 years ago, it saw significant price drops.

Naturally, you would expect Nintendo to discount the Switch with the arrival of the Switch 2.

But that didn't happen. Instead, earlier this year, Nintendo actually raised Switch prices. Although there were caveats, it still didn't change the fact that raising the price of an older console is rarely justified.

Nintendo cited "market conditions" as the reason. To their credit, new US tariffs implemented by President Donald Trump offer a legitimate explanation. However, this doesn't change the fact that the Switch is almost certainly much cheaper to produce now than it was in 2017. Even with tariffs, it's likely that production costs are still far lower than the current sale price.

Nintendo also hiked pricing on other items, saying that "market conditions" were to blame for these rises. These explanations may or may not be valid, but they don't seem good, and they show how far the firm has strayed from what fans want.