Nintendo is reducing production of its Switch 2 console by a third this quarter, from six million to four million units, following disappointing holiday sales in the United States. The move comes despite a strong launch, with sales now lagging behind expectations amid a thin software lineup. Shares in the company fell 6.3 percent in Tokyo after the news broke.
Nintendo has lowered its manufacturing plans for the Switch 2 console, cutting output from six million units to four million for the current quarter, with the reduction extending into April, according to people familiar with the matter who spoke to Bloomberg. The decision follows weaker-than-expected sales over the holiday season, particularly in the US, where demand fell 35 percent short of the original Switch's performance during its first Christmas period there. Globally, the console achieved record-breaking sales of 3.5 million units in its first four days and reached 10 million over the next four months, but momentum stalled ahead of the holidays. Sales remain strong in Japan, where demand often exceeds supply, and are in line with expectations in Europe. Strategist Amir Anvarzadeh of Asymmetric Advisors described the situation as 'awful news,' stating, 'This hardware shortfall in its first year, during its big holiday season, is awful news,' and adding, 'Clearly the software lineup has been poor.' Contributing factors include a tougher economy, higher console prices influenced by tariffs, and the absence of major releases like a new Zelda or mainline Pokémon title. Metroid Prime 4: Beyond, anticipated as a holiday driver, sold fewer than one million copies in December, below Nintendo's targets. Pokémon Pokopia, however, exceeded expectations with over two million units sold in its first four days. Nintendo has not raised its full-year sales forecast for the Switch 2 beyond 19 million units, a figure Bloomberg noted the company typically revises upward with strong performance. The company's shares dropped 11 percent in February amid concerns over tariffs and component costs, and fell a further 6.3 percent in Tokyo following the production news.
