One year into the Switch 2, we might’ve seen the top of the console market

Nintendo’s Switch 2 could be the last console of its kind.

One year in, the handheld is the fastest-selling console in history, with 19.9 million units moved as of Nintendo’s most recent quarter. But, as the industry continues to reel from AI’s “RAMpocalypse,” lingering tariffs, ballooning game budgets that’ve squeezed margins, and slowing “black hole” engagement, the Switch 2 may be the last of a dying breed: a reasonably-priced, mass market console.

The Switch 2’s $450 launch price, which many initially feared too high, at 50% more than its predecessor, now looks to have landed in a Goldilocks zone following multiple price hikes from Microsoft’s Xbox, Sony’s PS5, and, most recently, Valve’s Steam Deck.

Launching amid the peak of tariff chaos also seemed initially unfortunate, though arriving months before the memory crunch truly started now seems like a stroke of luck in hindsight. With memory prices soaring, Valve’s Steam Machine has been delayed to this summer, Sony’s PS6 is reportedly being pushed back a year or two, and Xbox’s Project Helix — which could be a PC-console fusion of sorts — won’t ship “alpha” versions to developers until next year.

The years ahead seem to be shaping up to be even less friendly to the business, with consoles’ affordability advantage dwindling, mobile and cloud gaming advancing, game prices climbing, and attention being further spread across different forms of entertainment. As many have pointed out: gaming appears to be heading towards being a luxury activity.

Nintendo will hike the cost of the Switch 2 by $50 in September, and is forecasting 16.5 million unit sales of the handheld for its current fiscal year — a 17% drop from the year prior. More expensive future consoles that may have more overlap with PCs are unlikely to sell at the same pace — meaning the Switch 2 may be the top of the console business as we know it.