Report: Nintendo slashes Switch 2 production by a third due to weak U.S. sales
Nintendo is reportedly cutting back on Switch 2 production with demand for the console dwindling in the United States.
Bloomberg sources claim the Japanese company has reduced output of its flagship console by around 33 percent after U.S. sales fell below expectations over the holiday period.
The company now purportedly intends to produce around 4 million consoles during the current quarter—significantly less than the 6 million units it had originally planned to manufacture.
The Switch 2 launched in June 2025 and retails for $450 in the United States. It became a major seller after topping 17 million sales worldwide in around six months.
Nintendo upgraded its Switch 2 hardware forecast in November 2025 and said it expected the console to shift around 19 million units globally during the current fiscal year ending March 31, 2026. The company reiterated that forecast in its latest fiscal report.
Bloomberg is reporting that Nintendo decided against accelerating Switch 2 production following the successful launch of Pokemon Pokopia —which sold 2.2 million units within four days of launching exclusively on the handheld hybrid. Sources told the publication the company is waiting to see whether the popular title and other releases have longevity before ramping up hardware production.
Electronics manufacturers, including those operating within the video game industry, are dealing with component shortages and price increases resulting from rampant investment in AI technology.
In February, Nintendo president Shuntaro Furukawa said the company is working to secure "stable supplies" of memory components to preserve the price of Switch 2 hardware, but noted that long-term headwinds could "put pressure on profitability."
Last year, Nintendo also increased the price of Switch hardware and Switch 2 accessories in the United States due to what it called shifting 'market conditions.' The news came with U.S. president Donald Trump imposing tariffs on a range of countries.
Nintendo will release its next earnings report on May 8, 2026.
