Nintendo Switch 2 controllers are displayed during at the Nintendo New York store on June 4, 2025, for a launch event ahead of the video game hybrid console's midnight release.
Nintendo sold more than 3.5 million units of its flagship Switch 2 gaming system in the four days following its launch, with online stores of major U.S. retailers putting up "out of stock" signs.
The record-breaking start for the company's first new console in eight years, puts Nintendo on the path to realizing its aim of selling 15 million units of the Switch 2 console in the fiscal year ending March 2026.
However, analysts continue to believe that those expectations are modest, and forecast the strong initial demand to sustain.
"The market expected a record from Nintendo, and as it turns out, Nintendo delivered," Serkan Toto, CEO and founder of gaming industry consultancy Kantan Games, told CNBC.
"All signals prior to launch pointed to significant demand, and I believe we will see further records broken over the next weeks or months," he added.
Toto has maintains that the Switch 2 will sell over 20 million units in its first 12 months. David Gibson, senior research analyst at MST Financial told CNBC that he expects 20 million sales for the year ending March 2026.
The Switch 2, which was released on June 5, has been met with much fanfare, with people lining up for hours ahead of midnight releases at Nintendo stores.
"Fans around the world are showing their enthusiasm for Nintendo Switch 2 as an upgraded way to play at home and on the go," Nintendo of America President and Chief Operating Officer Doug Bowser said in a statement, adding the company was thankful for the response.
Tokyo-listed shares of Nintendo, which have gained nearly 30% so far this year, were down 3.5% on Wednesday, LSEG data showed. The company has seen its shares rise nearly fivefold since the original Switch debuted in early March 2017.
It remains to be seen if the Switch 2 can recapture the magic of its predecessor, which had set the bar with 15 million unit sales in its first year. It went on to sell more than 152 million units to become the second-highest selling Nintendo device ever, behind the Nintendo DS.