Nintendo smashes the "soft demand theory": Switch 2 has strong sales rebound in North America, leading Sony's PS4.

Data from the US market tracking agency Circana shows that sales of Nintendo's flagship console Switch 2 rebounded last month, easing concerns about slowing demand. Boosted by this news, Nintendo's stock price surged. Nintendo's Japanese stock price rose by 6.6%, marking the largest single-day increase since November 5th. According to Circana, the Nintendo Switch 2 remained the best-selling game console in the US at the end of December and throughout the year 2025, helping to offset declines from competitors and driving a 9% increase in hardware spending for the industry as a whole. Despite a significant drop in spending in November due to tariff increases and rising component costs pushing up game console prices, the sales of Switch 2 remained strong. Jefferies Financial Group Inc. analyst Atul Goyal wrote in a report, "The latest US data shows that claims of Switch 2 being 'soft' have been completely overturned." He stated that even without "extensive promotions", this game console still became the sales champion in the US, indicating its "product itself has strong power". Wolfe Research analyst Peter Supino raised the stock rating from "below peers" to "in line with peers". Nintendo's flagship product Switch 2 saw a rebound in sales in December, maintaining its record-breaking sales momentum. According to Circana, sales of Switch 2 were 35% higher than Sony's PlayStation 4 after seven months on the market. The Kyoto-based company had multiple best-selling games in December. The report shows that overall growth in the US gaming market stagnated, with an expected 1% growth to $607 billion by 2025. Software spending shifted towards subscription models, with a 20% growth in subscription models. Microsoft Corporation's Xbox Game Pass, Sony's PlayStation Plus, and Nintendo's Switch Online all offer monthly paid additional benefits and content, and some popular games also introduced so-called "battle passes", generating revenue through seasonal or periodic subscriptions. Epic Games' "Fortnite" continues to dominate user attention and game time on console platforms. In 2025, "Fortnite" had the highest number of active users on both PlayStation and Xbox platforms, with over half of active users experiencing the game at least once. Roblox, under Roblox (RBLX.US), maintained record-high digital goods retail sales in December and throughout the year, with sales of digital goods (such as gift cards purchased in physical stores and in-game currency) ranking first and annual revenue increasing by 16%.