Nintendo reduces Switch 2 output as demand falls short of expectations

Reports indicate that Nintendo is reducing production for the Switch 2 in response to demand that has not met previous projections, especially within the United States. Bloomberg reports that the company has adjusted its quarterly production target to approximately 4 million units, a decrease from the 6 million units initially planned.

The decision to scale back Nintendo Switch 2 production is largely tied to weaker sales in the United States. The 2025 holiday period allegedly fell short of expectations. Despite the recently released Pokémon Pokopia's strong launch, overall momentum was hindered by Metroid Prime 4: Beyond, which failed to reach one million units sold during its first month on the market.

This adjustment also comes despite an impressive launch period. Since releasing in June, the Switch 2 has surpassed 17 million units sold, marking the most successful hardware debut in Nintendo’s history. However, sales momentum appears to have cooled in recent months, particularly in markets outside of Japan.

In Japan, demand for the Switch 2 is said to remain relatively stable compared to the U.S. This is partly credited to a more affordable regional version of the console, though the report claims Nintendo earns little to no profit from those sales, unlike in other markets.

Although Nintendo remains on track to hit its yearly sales goals, the choice to scale back production implies that the company's initial demand forecasts were overly optimistic.

There’s also uncertainty surrounding potential price increases for the Switch 2, especially as competitors like Sony and Microsoft have already made similar moves. Ongoing component shortages are reportedly affecting Nintendo as well, and while nothing has been officially confirmed, earlier reports suggest a possible price hike could arrive sometime in 2026. For now, the console still holds its $450 launch price.

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