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There's of course little chance this will happen. But if it does, Nintendo will still be swimming in money. Unless Nintendo makes some really dumb decisions out of the gate with the Switch 2 (we're talking Wii U era mistakes), it's all but guaranteed to be a home run. And so if the Switch hypothetically has a large drop in a year or so it really won't be a problem. The software and online will still sell to more than make up for declining hardware sales.
Honestly, we might see Switch 2 peak early like the Wii did. Switch 2 could still be a homerun but have a sharp cliff. I think that's more likely than a sharp cliff for the Switch.



Lifetime Sales Predictions 

Switch: 151 million (was 73, then 96, then 113 million, then 125 million, then 144 million)

PS5: 115 million (was 105 million) Xbox Series S/X: 57 million (was 60 million, then 67 million)

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima