Japan’s video game industry saw a dramatic upswing in 2025, largely fueled by the launch of Nintendo’s Switch 2. Market data shows that the total value of the gaming sector surged from around ¥301 billion in 2024 to approximately ¥418 billion in 2025—marking an impressive 40% increase year-over-year.

The majority of this growth came from hardware sales, with the Switch 2 leading the charge. In just its first year, the new console sold over 3.78 million units, making it the fastest-selling gaming system in Japanese history. This success also carried over into software, as nine out of Japan’s top ten best-selling games in 2025 were Nintendo titles, with Mario Kart World dominating the charts at more than 2.66 million physical copies sold.

The momentum behind Switch 2 has helped Nintendo reassert its dominance in the Japanese market, outpacing competitors by significant margins in both hardware and software sales. Weekly figures consistently showed the system outselling other consoles by several multiples, highlighting a renewed appetite for Nintendo’s ecosystem.

Industry analysts suggest this shift is more than a temporary spike. With strong platform loyalty and a software library tailored to local tastes, the Switch 2 appears to have reignited long-term enthusiasm for gaming in Japan.

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