Bloomberg: Nintendo reduces Switch 2 production by 30% due to weak holiday sales

Investing.com - According to Bloomberg on Tuesday, Nintendo Co., Ltd. (TYO:7974) will cut the production of Switch 2 due to demand not meeting internal expectations for the year-end holiday season, especially in the U.S. market.

Following the report, the company’s stock price fell 2%, while the Nikkei 225 index rose 0.5%.

Subscribe to InvestingPro for more insights on Japan’s leading stocks

Bloomberg, citing sources familiar with the matter, reports that Nintendo plans to produce 4 million units of Switch 2 this quarter, down from the initial plan of 6 million units.

Bloomberg also states that this reduced output will continue into April.

Switch 2 made a remarkable debut in early 2025, selling over 3.5 million units worldwide within the first four days of release.

By early 2026, the console’s sales had reached approximately 18 million units.

However, concerns have emerged about whether Nintendo can sustain this sales momentum, especially as worries grow about the lack of more exclusive games for the console.

The recently released Pokémon: Pokopia helped ease some of these concerns, selling 2 million copies in less than a week after launch, seen as a dark horse.

In addition to console sales, Nintendo faces adverse factors such as rising global memory prices, driven by the huge demand from the AI industry, which has significantly squeezed global supply.

Consumer spending on discretionary goods slowing down could also put pressure on Switch 2 sales, especially amid increasing uncertainty about global economic growth.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.