While Sony and Microsoft face considerable challenges in the console segment, Nintendo celebrates a historic milestone with the Switch 2. The new generation of the hybrid console secured second place in sales volume in its first year of availability in the United States. The feat highlights Nintendo’s resilience in a period of economic instability that directly affects its main competitors.
Recent data released by the agency Circana reveals that the Switch 2 largely dominated the market, both in the month of May and in 2026. Nintendo’s most recent video game reached the impressive mark of 5.9 million units sold in the country when completing its first twelve months on shelves. This sales level was only surpassed by the legendary Game Boy Advance, which sold 6.5 million units in the same period after its original launch, contextualizing Nintendo’s current success with its own historical records.
The remarkable performance of the Switch 2 boosted global industry numbers, resulting in a 38% increase in consumer investment in gaming hardware compared to the previous year. The total amount reached US$249 million, however, this positive trend is expected to reverse soon, as recent adjustments in the prices of rival consoles drive away potential buyers.
In the same period, the PlayStation 5 recorded a 43% drop, with a 58% decrease in units sold. For Microsoft, the financial outlook was slightly more favorable, with a 7% increase in expenses related to the Xbox Series compared to the previous year. However, physical sales of the brand’s devices decreased by 12%, suggesting that the higher prices of the products were decisive in compensating for the lower number of units sold.
Circana’s report presented a worrying scenario for the two main console developers by highlighting the extent of the historic downturn in the sector.
“PlayStation hardware unit sales fell to their lowest May total since May 2000, while Xbox hardware unit sales were the lowest on record for a month of May.”
Worsening the situation for consumers of the Xbox brand, Microsoft released discouraging news yesterday. From August 1, 2026, the Xbox Series X and Series S models will have their prices increased. The adjustment will be US$100 for the 512 GB versions and US$150 for the 1 TB models. Furthermore, the manufacturer decided to discontinue the 2 TB version, citing the global crisis in memory production as the main reason for the change.