What’s the Truth About Nintendo Switch 2 Sales?

Why It Matters

The Switch 2’s sales provide a rare growth catalyst in a stagnant console market, influencing Nintendo’s valuation and signaling how hardware launches can offset broader industry headwinds.

Key Takeaways

• Nintendo Switch 2 drives hardware sales growth in February
• US game market up 1% due to Resident Evil and subscriptions
• CD Projekt revenue up 9% thanks to Cyberpunk and Switch edition
• Ubisoft faces ongoing cuts, raising concerns over studio morale
• Epic layoffs and UK sector decline underscore industry-wide instability

Summary

The Game Business Show episode tackles the truth behind Nintendo Switch 2 sales while contextualizing broader industry turbulence, including Epic’s massive layoffs and a sharp decline in UK game development.

Data from Sakana shows US hardware revenue rose modestly, largely on the back of the Switch 2 launch, contributing to a 1% overall market increase. Resident Evil’s strong performance and a 27% boost in subscription services also lifted software numbers. CD Projekt posted a 9% revenue jump, driven by Cyberpunk 2027 and a Switch edition, while Ubisoft announced the closure of Red Storm Entertainment, cutting 105 jobs.

Host Chris highlighted CD Projekt’s comment about investing $140 million in new IPs like Witcher 4, and guest Steven Tortillo recalled his first solo interview with Sega’s president as a milestone for independent journalism. Ubisoft’s “death by a thousand cuts” remark underscored morale challenges across studios.

The modest hardware uptick suggests the Switch 2 is a rare growth catalyst for Nintendo in an otherwise stagnant console market, but broader headwinds—layoffs, tax‑credit concerns, and studio closures—remain. Investors and developers alike must monitor Nintendo’s next‑gen performance and the ripple effects of industry‑wide cost‑cutting.

Original Description

The Game Business has been around for an entire year, and to mark the occasion, we have Game File reporter Stephen Totilo on today’s episode of the Show. Stephen was our very first guest back in March 2025.

Today, Stephen and Chris discuss Nintendo’s current performance, Epic’s shock lay-offs, and the positive impact of Meta removing Horizon Worlds from the Quest Store.

00:00 Introduction

03:33 Dark Outlaw Games

04:50 UK scene declines

05:49 Red Storm

07:05 Crimson Desert and US data

08:20 CD Projekt and Unknown Worlds

11:00 The Game Business and Game File

21:25 Epic layoffs

35:26 Switch 2 sales

53:35 Meta's Horizon Worlds