Are Gaming Consoles Dead? Nintendo Switch 2 Says Otherwise

Whenever a hot new gaming console arrives, a chorus of “console is dead” commentary floods news sites and community channels. In the past, those proclamations were always wrong, but with the launch of Nintendo Switch 2, something’s changed.

The format’s biggest brands seem to think it needs a reboot if it’s going to survive. Now, strategic moves are afoot to keep the genre fresh and growing.

Has the console run out of road? We look at how Microsoft, Nintendo, and Sony are preparing the format for a new gaming future.

Table of Contents Table of Contents

1. Key Takeaways
2. Console’s Odd Duality
3. Nintendo Goes Multichannel
4. Microsoft’s Ecosystem Focus
5. Sony’s Emerging Multimedia Franchise
6. The Bottom Line
7. FAQs
8. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Console’s Odd Duality
3. Nintendo Goes Multichannel
Show Full Guide
4. Microsoft’s Ecosystem Focus
5. Sony’s Emerging Multimedia Franchise
6. The Bottom Line
7. FAQs
8. References

Console’s Odd Duality

What is it about gaming consoles? The category has grown steadily for almost a decade and accounts for roughly $25 billion in unit sales in 2025 – rising to $80 billion when game revenues are added in.

Yet as much as players may enjoy the gameplay, graphics, or social features, a combination of launch event hype, high prices, limited game selection, and technical issues has always made the format a target for critics.

That love-hate relationship probably accounts for the industry’s established ritual of declaring the category dead whenever it transitions to new hardware.

Dipping sales at the point where one generational period ends and another begins somehow tells analysts and investors that the console is on its way out. Historically, that perception has never been right, yet it persists.

The outro to this hardware cycle, however, seems different. Projected growth is flattening, and the Nintendo Switch 2 release date in June kicked off a new era. Console’s incumbents are rethinking the format’s future.

Nintendo Goes Multichannel

Nintendo’s evolving console approach draws on its history, brands, and intellectual property, leveraging its mass-market reach to target high-value segments. The opening of new branded US theme parks, plus the success of 2023’s Super Mario Bros. movie, and other retail initiatives beyond pure gaming, prove that Nintendo can succeed in multiple entertainment channels.

For Switch 2 to live up to the hype, the Japanese firm will need to prove that it won’t be a sequel to underwhelming releases of the past.

While the Wii was a huge success in its first iteration, the Wii U was a disappointment. Before the Switch 2’s launch, some analysts were drawing parallels with the Wii U, suggesting it might be another overhyped but minor upgrade.

Without a new version of The Legend of Zelda or Super Mario Bros. bundled in, there was skepticism about Nintendo’s ability to match the original’s stunning success.

Nintendo Switch 2 set a new all-time launch week unit sales record for video game hardware in the US, with over 1.1 million units sold during the week ending June 7, 2025 (excludes sales from the My Nintendo Store). The record was previously held by PlayStation 4.

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— Mat Piscatella (@matpiscatella.bsky.social) 14 июня 2025 г. в 01:57

So far, the doubters have been proven wrong. Switch 2 sold 3.5 million units worldwide in its first four days – a new industry record.

Figures from specialist analyst firm Circana show that US gamers alone bought 1.1 million units. Defying worries about US tariffs and the device’s historically high price, Switch 2 suggests Nintendo still has what it takes to generate console excitement.

The next test is to see if its multi-channel brand power can sustain it.

Microsoft’s Ecosystem Focus

Microsoft’s emergent approach to the console segment aims to make the most of its broad-based strengths in both gaming and computing, giving gamers more flexibility as to where and how they play.

Traditionally, Redmond’s console messaging has emphasized speed, responsiveness, and performance. It now looks to be building a story around an Azure-driven cloud gaming ecosystem, one that’s widely accessible and delivers great gaming experiences regardless of which device you choose.

It’s an interesting pivot for a company that once did all it could to keep PC users behind its OS walled garden. A shift in emphasis on handhelds and cloud-compatibility is a new twist, where gaming hardware becomes a way to extend distribution rather than a vector for platform lock-in.

Celebrating 20 years of partnership! AMD and @Xbox have redefined gaming together — and we’re just getting started. Our multi-year strategic partnership unleashes @AMDRyzen + @AMDRadeon power to co-engineer the future of gaming for every player, everywhere.

Read more from the… pic.twitter.com/WeGUEzVEcj

— AMD (@AMD) June 19, 2025

Consider the recently announced five-year partnership with AMD to co-engineer silicon for its next-generation Xbox consoles and cloud gaming infrastructure.

It seems clear that Microsoft wants to detach its gaming strategy from a single console and extend it across a device-agnostic ecosystem.

Whatever engineering efficiencies the two companies are aiming for by co-developing silicon across console, mobile, and cloud platforms, the shift could also give Microsoft an opportunity to leapfrog Nvidia and bring its AI capabilities into the gaming space.

This cross-platform strategy will likely shape the next chapter in the cloud gaming vs. console competition.

Sony’s Emerging Multimedia Franchise

Sony appears to be rethinking PlayStation’s business model, leaving its console-first focus behind as it builds a transmedia IP platform through strategic acquisitions.

Over the past four years, Sony has grown its already sizable position in Fortnite developer Epic Games, taken a major stake in Chinese streaming service Bilibili, and purchased popular anime video channel Crunchyroll for $1.2 billion. It’s also made investments in Discord and Scopely.

Selling premium console hardware is still the centerpiece, but the company’s strategic emphasis seems to be orienting toward franchise expansion across high-margin digital services.

Third-person action/adventure game The Last of Us has successfully crossed over into television. The Crunchyroll acquisition shows its seriousness about the anime genre. Sony Studios, meanwhile, is working hard to convert games like Helldivers, Ghost of Tsushima, Until Dawn, and Horizon Zero Dawn into film adaptations.

Sony confirms ‘Solo Leveling’ is the most-watched anime ever on Crunchyroll pic.twitter.com/YHhCnjxqAQ

— Dexerto (@Dexerto) June 17, 2025

These initiatives suggest PlayStation’s days as a closed hardware ecosystem could be on the wane.

Sony looks to be building the foundation for a vertically integrated content business. Like Nintendo, it’s doubling down on its legacy and cultural depth, using exclusive IP to create engagement loops across different formats, potentially increasing customer lifetime value.

The Bottom Line

Back in April 2025, more than two million Japanese gamers signed up for Nintendo’s Switch 2 lottery. Even in a time of tariff fears, rising inflation, geopolitical tensions, and economic uncertainty, there was intense demand for a premium consumer gadget priced at $450.00

An impressive pre-order statistic, but it says as much about the broader economics of console gaming as it does about Nintendo’s marketing nous. The console is counter-cyclical, with a market dynamic all its own. Switch 2’s feverish reception showcases how out of touch conventional assumptions about the format’s resilience can be.

That has significant implications for investors, strategists, and product developers. The console category may be at the opening stages of a new era, and incumbents are formulating new approaches to cement their dominance – or grow it.

As tech firms navigate the thorny intersections between innovation, regulatory oversight, and changing consumer behavior, the future of console gaming could provide valuable insights into sustainable tech business model adaptation during times of political transition – lessons that could extend well beyond the gaming sector.

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