Market tracking firm Circana's data reveals that the Nintendo Switch 2 console is demonstrating robust sales performance in the crucial US market, alleviating concerns about a slowdown in demand and subsequently driving Nintendo Co., Ltd.'s stock price up by 5.6%.
Circana indicated that the Switch 2 console not only secured the title of the best-selling video game hardware in the US for December 2025 but also maintained its position as the annual sales leader. Nintendo's stock price also recorded its largest intraday gain in over two months.
Jefferies analyst Atul Goyal wrote in a report, "The latest US market data refutes the narrative of 'weak Switch 2 demand'." He pointed out that the console's ability to remain the US sales leader "even without significant promotional activities" sufficiently highlights its "inherent product competitiveness." Wolfe Research analyst Peter Supino upgraded his rating on Nintendo stock from "Underperform" to "Peer Perform."
Despite tariff increases and a surge in component costs in November 2025 pushing up console prices, leading to consumer hesitation and a significant drop in market spending, the Switch 2's outstanding performance offset declines in competitor product sales, ultimately driving a 9% year-on-year increase in total annual spending for the entire video game hardware industry. A sales rebound for Nintendo's flagship product in December allowed the company to extend its record-breaking sales momentum. According to Circana data, in terms of unit sales, the Switch 2's sales seven months after launch were 35% higher than Sony Group's PlayStation 4 at the same point in its lifecycle. The Kyoto-based company had multiple games feature in December's best-sellers list, including "Pokémon Legends: Z-A."
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