Nintendo Slashes Switch 2 Production by 30% Amid Plummeting US Sales and Rising Costs
The Nintendo Switch 2 gaming console debuted in June 2025 and showed record sales in almost all markets. However, during the first holiday season (end of 2025), it turned out that there was a decline in interest in the gadget in the US, and now the Japanese company has made a tough decision.
What's known
According to Bloomberg, Nintendo will cut Switch 2 production by more than 30% and will release 4 million devices instead of 6 million this quarter. This trend is likely to continue in April.
Nintendo investors have long been alarmed by the weak profitability of the Switch 2. Despite the device being the fastest-selling console in Nintendo's history, the sharp rise in memory chip costs has significantly reduced margins and is pushing the company to raise prices. However, this decision could lead to an even greater slowdown in sales.
Furthermore, analysts note that Nintendo's marketing department has nothing to interest new buyers yet, as all major exclusives have already been released or have not yet been announced, and third-party game ports are insufficient for an aggressive marketing campaign.
For those who want to know more
- Nintendo will release an updated version of the Switch 2 in Europe with a replaceable battery
- Nintendo appeals to court and demands compensation from the US government for damages due to illegal tariffs
Source: Bloomberg