The stability property of the loss-aversion-based noncooperative switched systems with quadratic payoffs is investigated. In this system, each agent adopts the lower sensitivity parameter in the myopic pseudo-gradient dynamics for the case of losing utility than gaining utility, and both system dynamics and switching events (conditions) are depending on agents’ payoff functions. Sufficient conditions under which agents’ state converges toward the Nash equilibrium are derived in accordance with the location of the Nash equilibrium. In the analysis, the mode transition sequence and interesting phenomena, which we call flash switching are characterized. We present several numerical examples to illustrate the properties of our results.