Kadokawa Game Linkage and Famitsu reported on January 19 that Japan’s console game market grew by 138.8% year-on-year in 2025, reaching 418.13 billion yen (approximately $2.64 billion USD). These figures are based on physical game sales and hardware sales during the one-year period ending December 28, 2025 (source: Otaku Soken). Note that revenue coming from things like digital sales, DLC, and in-game purchases is not accounted for, so the actual market size is likely larger.
According to the report, hardware sales in Japan were up 149.3% year-on-year, while physical software sales grew by 121.0% compared to 2024. This significant growth is attributed to the launch of the Nintendo Switch 2 in June 2025. The Switch 2 alone sold 3.784 million units in Japan by the end of the year, while the original Switch sold an extra 1.52 million units. Additionally, the PS55 sold 879,000 units in 2025.
The best-selling physical games in Japan were Mario Kart World at 2.668 million units and Pokémon Legends: Z-A, which sold 2.534 million units (this is the total for both the Switch and Switch 2 editions).
With anticipated games like Dragon Quest VII Reimagined and Resident Evil Requiem slated to release on the Switch 2 in 2026, Famitsu and Kadokawa Game Linkage expect Nintendo’s new console to drive even further market growth.
