Nintendo Switch 2 Faces Game Sales Decline Amid Rising Costs

The sales of the Nintendo Switch 2 are declining as players buy fewer games, largely due to rising storage costs and increasing game file sizes. According to a report from Bloomberg, the console’s built-in storage of just 256GB is proving insufficient for many users, especially as prices for upgrading storage continue to climb.

The ongoing RAM crisis is at the heart of this issue. As gamers look to expand their storage, they are facing challenges due to soaring prices for NAND flash memory. This trend is exacerbated by the growing size of popular games. For instance, Final Fantasy VII Rebirth occupies nearly 100GB of space, consuming a significant portion of the Switch 2’s available memory. A gamer based in Tokyo shared their frustration, stating they used to “buy games on a whim,” but now find themselves more selective as space fills up quickly.

Recent data indicates that the Switch 2 is experiencing lower software sales compared to its predecessor. As of December 2025, the newer console was averaging 2.18 games sold per unit, while the original Switch maintained an average of 3.88 games. This decline raises concerns about the long-term profitability of the platform, as console makers typically earn substantial revenue from game sales.

Rising Costs of Storage and Games

The cost of expanding storage for the Switch 2 is becoming increasingly burdensome. At launch, a 256GB microSD Express card was available for approximately $36, while a 512GB card cost around $66. Currently, those prices have risen to $46 and $84, respectively. In contrast, some products, like the SanDisk 256GB card, have remained steady at $60, yet the 512GB version has jumped to $99.

The situation is further complicated by the pricing of games themselves. Titles such as Mario Kart World have crossed the $80 threshold, making the overall cost of gaming on the Switch 2 quite high, especially when combined with the console’s base price, which ranges from $450 to $550.

Nintendo’s Challenges in a Competitive Market

Since the launch of the Switch 2 in March 2025, Nintendo has navigated a challenging landscape marked by fluctuating tariffs and rising component prices. The Trump administration’s tariff policies added complexity to the market, although recent Supreme Court rulings have begun to stabilize the environment. Still, pressure from the memory crisis is affecting not just Nintendo but the entire technology sector.

While Nintendo has not yet increased prices for the Switch 2, President Shintaro Furukawa acknowledged the challenges the company faces. “The market environment is indeed challenging,” he stated in February. Although Nintendo may weather this storm in the long term, the immediate future poses significant hurdles, particularly as both hardware and software prices escalate.

The combination of rising costs and declining game sales signals a critical juncture for the Nintendo Switch 2. As the gaming landscape evolves, it remains to be seen how Nintendo will adapt to these challenges while maintaining its position in a competitive market.