Nintendo has reduced production of its Switch 2 console by 33%, cutting output from 6 million to 4 million units this quarter following disappointing holiday sales, according to reports from Entrepreneur and Tom's Hardware. The decline reflects weaker-than-expected demand in the critical U.S. market, where sales fell short of projections despite the system's record-setting launch in June 2025, as noted by Japan Times.
The production adjustment involves slashing 2 million units from Nintendo's initial plans, signaling the company's effort to recalibrate supply with reduced consumer interest. Bloomberg's report, cited in Zero Hedge, linked the production cut to slumping sales momentum, particularly in the United States, which contributed to a sharp drop in Nintendo’s Tokyo stock prices.
In response to these challenges, Nintendo has also announced a price reduction for digital Switch 2 games. The Verge reports that the first affected title is "Yoshi and the Mysterious Book," available for preorder at $59.99, aligning digital prices closer to physical copies. This move aims to address some cost and distribution factors while attempting to boost software sales amid the hardware slowdown.
The overall decline after a strong initial launch suggests Nintendo is facing difficulties maintaining early enthusiasm for the Switch 2, especially in key markets like the U.S. Industry analysts will be closely watching Nintendo’s next quarterly sales figures and any further revisions to the production forecast to evaluate whether the company can regain its sales trajectory in 2026.
Nintendo
Switch 2
Bloomberg
United States
