Nintendo Suddenly Cuts Switch 2 Production After Holiday Sales Dip

by on March 25, 2026

Nintendo has reportedly scaled back its planned production of the Nintendo Switch 2 after holiday sales fell short of expectations in several regions, according to multiple reports citing sources familiar with the company’s plans.

According to a report from Bloomberg citing “people familiar with the matter,” Nintendo plans to manufacture 4 million Switch 2 units this quarter, down from the 6 million units it had originally intended to produce, a 33% reduction in output. Sources told the publication that the lower output level is expected to continue into April.

The change follows weaker holiday demand in the United States. After a strong launch period, Switch 2 sales slowed during the Christmas season. According to Bloomberg’s sources, U.S. sales during the console’s first holiday season were about 35% lower than the original Nintendo Switch during its first Christmas in 2017.

The company has not confirmed the reported production change.

Despite the slowdown in some markets, the Switch 2 has still recorded the fastest-selling console launch in history. The system sold 17.37 million units by December 31, 2025, placing it 10 million units ahead of the original Switch over the same timeframe.

Nintendo currently expects the console to sell 19 million units before the end of its fiscal year on April 1, and the available figures indicate that the company is likely to exceed that projection.

Early demand for the hardware was supported by several high-profile game releases. Mario Kart World has sold 14 million copies, while Pokémon Pokopia, a Switch 2 exclusive, has become a commercial hit and provided a bump to Nintendo’s stock price. The day-one Switch 2 edition of Resident Evil Requiem also launched on the console, giving it feature parity with Xbox Series X and PlayStation 5 for one of the biggest games released so far this year.

Nintendo president Shuntaro Furukawa discussed the company’s regional sales performance with shareholders last month. “Domestic hardware sales volume exceeded our expectations, while overseas sales were slightly weaker than our expectations,” Furukawa said. He also explained that Nintendo’s global hardware and software forecast remains unchanged, although the regional breakdown and product assumptions differ from the revised forecast announced during the company’s second-quarter financial results announcement.

Holiday sales data showed clear regional differences. In Japan, the Switch 2 sold 2.43 million units during its first Christmas period, compared with 1.77 million units sold by the original Switch in its first holiday season. In the United States, the Switch 2 sold 2.3 million units, while the original Switch sold 2.82 million units during the same timeframe in 2017. In the rest of the world, the Switch 2 sold 2.27 million units, compared with 2.64 million units for the original Switch.

Japan remained the only market that experienced severe stock shortages during the launch period, according to Bloomberg’s sources.

Within Nintendo, there has been discussion about whether the company’s strategy during the console’s June launch influenced later demand. Bloomberg reported that executives have debated whether Nintendo’s effort to provide large quantities of inventory during launch “brought forward demand that would otherwise have materialized later in the year.”

The release schedule for software may also have affected hardware demand later in the year. Mario Kart World and Donkey Kong Bananza were released during the console’s launch period. Holiday titles such as Metroid Prime 4: Beyond and Pokémon Legends: Z-A were also available on the original Switch platform.

In Japan, demand for Switch 2 hardware was driven by titles including Pokémon Legends: Z-A Nintendo Switch 2 Edition and the Switch 2 exclusive Kirby Air Riders. Internationally, the console did not have a blockbuster release comparable to a Mario or Zelda title during the holiday period, and Metroid Prime 4: Beyond was not expected to fill that role.

The Bloomberg report also cited Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors, who commented on the holiday results. “This hardware shortfall in its first year, during its big holiday season, is awful news,” Anvarzadeh said. “Clearly the software line-up has been poor, at least until most recently, with Pokémon showing some hope.”

Another issue being discussed by analysts involves the global RAM crisis, which could increase costs for electronics manufacturers. Bloomberg reported that Nintendo has considered whether a price increase for the Switch 2 might be required if memory costs continue to rise. Furukawa told shareholders last month that Nintendo is working with suppliers to maintain a stable supply and said there are no plans to raise the price of the Switch 2 due to increasing memory costs at this time.

Bloomberg’s sources said the production change is tied to demand levels and existing inventory, not to concerns about RAM and storage costs. Companies with large quantities of hardware already stored in warehouses typically reduce manufacturing until stock levels match sales.

The publication also reported that the success of Pokémon Pokopia has not led Nintendo to increase console production yet. The company is waiting to see whether that game and other releases generate sustained sales before adjusting manufacturing again.

Earlier reports from November stated that Nintendo expected to supply more than 20 million Switch 2 units during the console’s first year on the market.

Separate reports have also suggested that Nintendo is examining a Switch 2 revision with a replaceable battery for the European market, following new legislation related to battery standards. If a revised version is planned, it could lead the company to reduce production of the current model while maintaining enough supply to meet demand. This possibility has not been confirmed by Nintendo.

Nintendo’s pipeline of upcoming games for Switch 2 includes Super Mario Bros. Wonder Nintendo Switch 2 Edition + Meetup in Bellabel Park, scheduled for March 26, Tomodachi Life: Living the Dream on April 16, and Yoshi and the Mysterious Book on May 21. Other titles listed for 2026 include Fire Emblem: Fortune’s Weave, Rhythm Heaven Groove, and Pokémon Champions, while Splatoon Raiders currently has a TBA launch date.