Nintendo’s Switch 2 Lifts Japan Game Market by 40% in 2025

Nintendo Switch 2 console helped Japan’s video game market grow an estimated 40% year-over-year in 2025, according to annual sales figures published by Famitsu. The system sold 3.78M units, outpacing all other consoles in the region, including Nintendo Switch, and became Japan’s fastest-selling console in history.

The surge in hardware demand translated into the growth of domestic software sales, with Nintendo Switch and Switch 2 occupying nine of the top ten best-selling physical games of 2025. Titles such as Mario Kart World accounted for more than 2.6M copies sold, proving Switch 2’s influence across both hardware and software markets. Mario Kart World also became the annual best-selling console game in Japan.

Due to Switch 2’s dominance, Japan's console gaming market increased from ¥301.32 billion Yen (~ $1.91 billion USD) in 2024 to ¥418.13B (~$2.64B) in 2025, resulting in 138.8% year-on-year growth. Hardware sales, which increased from ¥189.4B (~$1,2B) to ¥282.6B (~$1.79B), accounted for the majority of this growth.  Based on these data, Japan’s overall tangible software sales rose by 121%, while hardware sales increased by 149.3% year-on-year, compared to 2024.

According to reports, Nintendo games also dominated the best-selling chart for the 21st consecutive year in Japan, whereas on the console side, the company has now established its legacy for producing the best-selling console for two decades, except for one year.

Nintendo’s Market Growth in Japan and Other Consoles

Nintendo Switch 2 led console sales in Japan for 2025 and accounted for more than half of all consoles sold. Across the broader hardware landscape, the original Switch followed in second place with 1.52M units sold, while PlayStation 5 (PS5) trailed with 879.2K units.

While Switch 2 had an outstanding sales figure, Nintendo’s rival Sony’s PS5 sales dropped by 60% in 2025, despite a cheaper Japan-only model. 2025 marks two consecutive years since 2023 when PS5 sales dropped in Japan. Other consoles, such as Xbox Series X|S and PS4, sold only 31.2K units and 1,087 units, respectively. 

Nintendo’s Mario Kart World topped the best-selling chart, while both versions of Pokémon Legends: Z-A claimed second and third positions with 1.52M units on Switch and approximately 1M units on Switch 2. Other Switch-series titles, such as Kirby Air Riders, Donkey Kong Bananza, and Minecraft, also came within the top ten.

This distribution highlights Nintendo’s continued leverage of first-party intellectual property in shaping market outcomes, despite the recent fall of its share price. Nintendo’s share price in Japan has dropped about 33% from its all-time high in August 2025, reflecting concerns around slowing post-launch momentum, tariff pressures, and the need for a stronger lineup of standout titles beyond marquee franchises, despite its successful year.