With the menace of price hikes looming over every piece of gaming hardware and early 2026 reports that Nintendo Switch 2 was below Switch 1’s sales curve over its first December period in the US and Europe, many have started to wonder if we were looking at a strong start with bad legs for the newest hybrod console. But, in Japan at least, that doesn’t seem to be the case.
Via Automaton West (from original reports by Kadokawa Game Linkage and Famitsu), we have learned Japan’s console game market saw a big boost year-on-year in 2025, with a 138.8% growth across the board. It reached 418.13 billion yen, which amounts to around $2.64 billion. These figures are based on physical software and hardware sales as reported through the end of 2025, so they include the bulk of the Christmas shopping we typically see every December.
Mind you, we haven’t seen the more specific data for the Christmas period, but overall, Japan’s console game market is looking remarkably strong, with the Switch 2 outpacing Switch 1’s first year (and every other console’s, it seems) in Nintendo’s home turf. Things look even better when we take into account digital sales, DLC, and in-game purchases are not accounted for in the aforementioned reports.
Moreover, the original Switch continued to perform well given its age and the presence of Nintendo’s second hybrid console, with 1.52 million units reportedly sold in 2025, putting it above PS5’s sales in Japan last year. It must be noted other charts aren’t as optimistic, but the information shared shows the Japanese market favours Nintendo’s hardware.
When it comes to best-selling physical games in Japan, Mario Kart World (2.668 million units) and Pokémon Legends: Z-A (2.534 million units) conquered the top spots with the Switch 1 & 2 releases combined.
Looking at what early 2026 has in store for us and the strong focus on iconic JRPG series like Final Fantasy and Dragon Quest making the jump to Switch 2 before first-party heavy hitters start to arrive, we’re not expecting a slowdown of that market’s growth.
