The news: The Nintendo Switch 2 shattered hardware sales records despite a $150 price hike over its predecessor and higher game and subscription prices. US sales hit 1.6  million units in June—the best console launch month ever—surpassing the PlayStation 4’s November 2013 record of 1.1 million.

Globally, over 5 million units sold by early July, with Japan alone accounting for 1.54 million in its first month—edging past the Game Boy Advance’s 2001 sales record. These are retail figures and don’t include direct sales through Nintendo’s web store, indicating sales are likely even higher.

Nintendo changes gaming’s rules: While the rest of the industry leans into price cuts, subscription bundles, and cloud gaming, Nintendo is sticking to its own playbook—and winning. 

In a year marked by soft demand, layoffs, and missed forecasts across gaming, Nintendo delivered a premium-priced console and games at a time when interest in consoles is declining. Here’s what sets the company apart:

• Ideal form factor. The Switch 2’s convertible form factor makes it a competitor to smartphones and PC handheld gaming devices like the SteamDeck. When docked and connected to a TV, it’s a viable alternative to Xbox and PlayStation consoles.
• No game pass, no problem. Nintendo refuses to chase the all-you-can-play model. Consumers still line up for physical bundles and full-price exclusives.
• Consistent delight. Unlike rivals pushing unfinished games, Nintendo delivers polished, accessible titles that work on day one. Physical cartridges also retain their resale value while digital copies can’t be resold.

Our take: Nintendo’s end-to-end control over hardware, software, services, and first-party games sets it apart in a gaming industry chasing endless content and fragmented subscription models. By owning the full experience, Nintendo delivers consistency others can’t.

Its Switch 2 launch has created a rare window for advertisers and marketers to tap into a growing, premium ecosystem built on loyalty, scarcity, and emotional resonance. 

To ride the wave, brands can partner with Nintendo for themed consoles, accessories or in-game downloads. Or, they could seek out third-party developers for subtle, story driven placements in games.

From co-branded bundles and promotions to real-world activations, the opportunity lies in meeting a multigenerational but captive audience where they play.