What's Happening?
Nintendo's stock experienced a decline on Friday, despite the Switch 2 console achieving a significant sales milestone. According to VGChartz's sales estimates, the Switch 2 sold 1,594,817 units in July 2025, making it the best-selling console for that month. This achievement pushed the total sales of the Switch 2 past 7 million units, highlighting its strong market performance. The Switch 2 has outperformed the original Switch in sales, selling approximately 840,000 more units in its second month compared to the original Switch's second month sales. This trend suggests that the Switch 2 could potentially surpass the original Switch's first-year sales if its current momentum continues. The Switch 2's success is being closely monitored by gamers and investors, with hopes that it might eventually surpass the lifetime sales of the original Switch, which stands at an estimated 151.35 million units.
Why It's Important?
The Switch 2's sales performance is crucial for Nintendo as it could redefine the company's position in the competitive gaming console market. Surpassing the original Switch's sales would be a significant achievement, given the original's status as one of the best-selling consoles in history. If the Switch 2 continues its current trajectory, it could challenge Sony's PlayStation 2, which holds the record for the highest lifetime sales at 160.63 million units. Additionally, the Switch 2 is on track to outperform modern consoles like Sony's PlayStation 5 and Microsoft's Xbox Series X/S, which have sold 78.22 million and 33.4 million units respectively. This success has contributed to Nintendo's stock gains in 2025, although the stock saw a slight decline of 0.89% on Friday.
What's Next?
Nintendo's future strategy will likely focus on maintaining the Switch 2's sales momentum to achieve its ambitious sales targets. Investors and analysts will be watching closely to see if the Switch 2 can continue to outperform its competitors and potentially surpass the original Switch's lifetime sales. The company's stock performance will be influenced by these sales figures, and analysts have given Nintendo a Moderate Buy rating, with a potential upside of 10.83% based on the average stock price target of $101.46.
