Nintendo’s Switch 2 sales have taken a hit, with the company reporting a 34.4 percent year-on-year decline in hardware sales for the first quarter of fiscal year 2027. The Switch 2 sold just 3.82 million units during this period, down from the 5.82 million units shifted during the same time last year.
Despite this downturn, Nintendo’s forecast remains unchanged, with the company still predicting it will sell 16.5 million units by the end of fiscal year 2027. This would represent a significant decline on the 19.86 million Switch 2 units sold in fiscal year 26, but it’s worth noting that Nintendo has consistently been conservative in its sales predictions.
The numbers are concerning, especially given the price hike implemented by Nintendo back in May to combat rising costs driven by the ongoing AI-fueled memory crisis and war on Iran. The move was designed to maintain a “healthy earnings structure” across the company, but it’s clear that raising prices has had an impact on sales.
However, there is some positive news for gamers. Software sales are up, with Nintendo reporting a 9.2 percent year-on-year increase in Switch 2 title sales during Q1. The company highlighted Tomodachi Life: Living the Dream and Pokémon Pokopia as standout releases, with those titles selling 7.94 million and 1.27 million units respectively.
Pokémon Pokopia is a particularly interesting case, as it’s a Switch 2 exclusive that has clearly resonated with gamers. Its success suggests that Nintendo’s decision to limit its availability to the newer hardware platform may have been a shrewd move. Meanwhile, Tomodachi Life’s popularity across all Switch hardware platforms demonstrates the enduring appeal of classic Nintendo titles.
It’s also worth noting that sales revenue across Nintendo’s dedicated video game platform business declined by 13.1 percent year-on-year to 483 billion yen in the first quarter. This decline was largely attributed to waning hardware sales, but it’s a reminder that Nintendo still has work to do to get its sales back on track.
In a statement, Nintendo acknowledged the decline in Switch 2 sales, but emphasized that many consumers continued to adopt the system despite the downturn. The company pointed to new title releases and other factors as contributing to this ongoing demand.
What does this mean for the future of VR? While Nintendo’s struggles with its console sales may not have an immediate impact on the world of VR, it does serve as a reminder that the gaming industry is undergoing significant changes. As gamers continue to demand more immersive experiences, companies will need to adapt and innovate in order to stay ahead.
Nintendo’s commitment to software sales and its focus on delivering high-quality titles for its platform are positive signs for the company, but it remains to be seen whether it can turn things around in terms of hardware sales. With the ongoing development of new technologies and platforms, one thing is certain: the gaming landscape will continue to evolve, and companies will need to stay agile in order to thrive.
Source: Game Developer XR — 2026-08-06