Nintendo is reportedly slightly scaling back Switch 2 production amid the wider headwinds faced by the gaming industry.
According to Bloomberg, the Japanese gaming giant plans to manufacture four million Switch 2 consoles this quarter instead of the previously planned six million. While the critical and commercial success of Pokémon Pokopia has driven increased interest in the Switch 2, Bloomberg reports that Nintendo is waiting to see if this game, plus other software titles, will have staying power before it ramps up console production.
Even still, the publication reports that Nintendo is expected to meet the average analyst estimate of about 20 million Switch 2 units sold in the fiscal year through this month. Nintendo had sold 17.37 Switch 2 units as of December 31.
It should be noted that Bloomberg attributes the reduction in production to “weak U.S. sales” for the Switch 2, but reputable analyst Daniel Ahmad of Niko Partners criticized this for being “poorly framed.” As he notes, Nintendo’s Switch 2 production pipeline is still “extremely high” even with the cutback, while the system as a whole remains the fastest-selling console of all time.
Instead, he says “macroeconomic headwinds and lack of major releases” were to blame not only for the Switch 2’s weaker U.S. sales, but slower business in general for games. That said, Ahmad acknowledged that Nintendo may have overestimated demand due to issues like the memory price surge, tariffs, Iran war and more.
But of course, these issues aren’t unique to Nintendo, and on the whole, the company is still faring well. (It should also be noted that the highly-anticipated The Super Mario Galaxy Movie, which is a sequel to the billion-dollar-grossing The Super Mario Bros. Movie, will also launch next month and no doubt generate a ton of revenue for Nintendo.)
Otherwise, much of the company’s larger 2026 calendar remains unclear, outside of some undated releases like FromSoftware’s The Duskbloods and Fire Emblem: Fortune’s Weave.
Source: Bloomberg
