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Illustration contrasting Nintendo Switch 2's weak Western holiday sales due to economy and pricing with strong performance in Japan.
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Nintendo employee attributes Switch 2 holiday slowdown to economy, pricing, and game lineup

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Updating earlier reports on the Nintendo Switch 2's weaker 2025 holiday sales in Western markets compared to the original Switch, a senior Nintendo employee highlighted a 'complicated economic landscape,' higher prices, and lack of a major Western title as factors. New details reveal resilience in Japan thanks to a cheaper local version and strong holiday game sales, amid a promising 2026 lineup.

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.

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Publishers have cancelled Xbox Series X|S versions of two upcoming games, citing resource allocation and a shifting console market. 1348 Ex Voto and Nickelodeon Splat Pack will now launch only on PC, PlayStation 5, and Nintendo Switch. This move reflects broader challenges for Xbox, including sharp sales drops and a lack of exclusive titles.

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