Video game industry-focused research firm DFC Intelligence projects that the Nintendo Switch 2 will outsell all competition, with sales expected to reach between 15 to 17 million units in its first year. Dive deeper into this exciting forecast!
Image from Nintendo
According to DFC Intelligence's 2024 Video Game Market Report and Forecast, released on December 17th, the Nintendo Switch 2 is set to dominate the next-gen console market. The report positions Nintendo as "the console market leader," leaving competitors Microsoft and Sony trailing behind. This dominance is attributed to the Switch 2's expected early release in 2025 and the current lack of significant competition. The forecast predicts sales of "15-17 million units in 2025, with over 80 million units sold by 2028." Such high demand might even challenge Nintendo's manufacturing capabilities.
Image from Mario official Nintendo site
While Sony and Microsoft are reportedly working on their own handheld consoles, these projects are still in early stages. DFC Intelligence suggests that these competitors "should release new consoles by 2028." This timeline gives the Switch 2 a significant three-year head start, ensuring its market dominance until then. The report also predicts that only one of the upcoming consoles will succeed, hinting at a potential strong performance from a hypothetical "PS6," bolstered by PlayStation's loyal fanbase and robust intellectual properties.
The popularity of Nintendo and its Switch console continues to soar, with the original Switch surpassing the lifetime sales of the PlayStation 2 in the U.S. This milestone was highlighted by Mat Piscatella, executive director and analyst at Circana (formerly NPD), on their official BlueSky account. "With its 46.6 million units sold life-to-date, Switch now ranks 2nd in all-time units sold across all video game hardware platforms in the U.S., trailing only Nintendo DS," he posted. This achievement is remarkable, especially considering a reported 3% decrease in yearly Switch sales.
The future looks promising for the video game industry, according to DFC Intelligence. Over the last thirty years, the industry has expanded by over 20 times its original size. After a couple of years marked by declining hardware and software sales, the sector is expected to experience robust growth through the end of the decade. David Cole, DFC Intelligence’s founder and CEO, stated, "2025 will mark the beginning of the industry’s upward trajectory."
2025 is poised to be a stellar year for gaming, with new releases reigniting consumer interest and spending. Alongside the Nintendo Switch 2, the highly anticipated Grand Theft Auto VI is set to launch, significantly boosting overall video game sales due to the franchise's immense popularity.
As the industry flourishes, the gaming audience is expected to grow beyond 4 billion players by 2027. The trend towards "high-end gaming-on-the-go" with portable, handheld systems is making gaming more accessible to a broader audience. The rise of esports and gaming influencers is also driving increased hardware purchases for both PC and consoles.
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