Nintendo Reducing Switch 2 Production After Weaker-Than-Expected Holiday - Report

The Nintendo Switch 2 is a record-setting product, quickly becoming the fastest-selling console of all time--even so, sales were reportedly below Nintendo's expectations at the end of 2025, which is said to spur the company into cutting down production output of the device.

That's according to a Bloomberg report, which claims that Nintendo will now make only 4 million Switch 2 units this quarter, a roughly 33% reduction from the 6 million units the company originally planned to make. The report adds that the revised output rate will continue in April. Shares in Nintendo fell by 6.3% in Tokyo after the report.

Despite the purported decrease in production, Nintendo should still be able to meet analyst predictions of about 20 million Switch 2 units sold in the fiscal year through this month, according to Bloomberg's sources. Back in November, Nintendo increased its hardware forecast for the business year from 15 million units to 19 million. As of December 31, Nintendo has sold 17.37 million Switch 2 consoles.

Switch 2 sales during the most recent winter holidays reportedly fell short when compared to the original Switch's first holiday season. Earlier this year, Nintendo reported a decline in profit margins and Nintendo president Shuntaro Furukawa acknowledged that while Switch 2 sales exceeded expectations in Japan, "overseas sales were somewhat weaker than expected."

Nintendo lacked holiday software hits, with the company's December release of Metroid Prime 4: Beyond only reaching over 1 million copies sold when combining the Switch 2 and Switch 1 versions. While Pokemon Pokopia proved successful after its March release, it hasn't moved the needle on console production yet--Bloomberg reports that Nintendo is waiting to see if Pokopia and other new games warrant an increase in production output. As of now, Yoshi and the Mysterious Book is the only first-party Switch 2 exclusive with a date, set for a May release.

All that said, it's hard to say that the Switch 2 isn't doing well overall. Nintendo is also facing many of the same challenges as the rest of the games industry, including rising memory chip costs and other economic uncertainties--even so, the Switch 2 is still likely to meet the company's forecasts, which have remained unchanged. And per Circana's Matt Piscatella, Switch 2 remains the second-fastest selling hardware in tracked United States history, behind only the Game Boy Advance.

Source