Nintendo Cuts Switch 2 Production as U.S. Sales Fall Short of Expectations

Nintendo is reportedly reducing its Switch 2 manufacturing output after holiday season sales came in below expectations, particularly in the United States.

According to Bloomberg, the company now plans to produce 4 million Switch 2 units this quarter, down from the originally planned 6 million.

Nintendo president Shuntaro Furukawa addressed the situation when speaking to shareholders, saying, "Domestic hardware sales volume exceeded our expectations, while overseas sales were slightly weaker than our expectations."

It is worth noting that Japan has actually been a strong performer for the console, with demand at times outpacing supply. Europe has been relatively steady too. The problem, more specifically, is the U.S. market, where the Switch 2 has struggled to build the kind of momentum Nintendo was counting on.

To put things in context, the Switch 2 had an incredible start. It sold 3.5 million units in its first four days and reached 10 million over the following four months, making it the most successful console launch in history.

But heading into the holiday season, things slowed down considerably. The console ended up tracking 35% below the original Switch's first Christmas performance in the U.S., which is a notable gap for a follow-up that had been performing so well.

A big part of the issue seems to come down to the game lineup. Metroid Prime 4: Beyond was expected to be the flagship holiday title, but it reportedly struggled to cross 1 million copies sold in December, falling well short of Nintendo's internal targets. Without a new Mario, a mainline Zelda, or a core Pokémon entry to anchor the season, the Switch 2 simply lacked that one unmissable game that pushes hesitant buyers over the edge.

There is some good news mixed in. Recently released Pokémon Pokopia has outperformed expectations, reaching over 2 million sales in just four days after launch. The game gave Nintendo's stock a welcome boost and has been well received critically.

However, as per Bloomberg's reporting, even that strong performance has not been enough to change Nintendo's decision to scale back production. The company wants to observe how the console performs over time before adjusting its plans.

Nintendo has also kept its full-year sales expectation at 19 million units, choosing not to revise it upward, which is something Bloomberg noted the company usually does when things are going well. That alone signals a more cautious outlook internally.

The broader context matters too. Economic pressures, including tariffs and AI-driven demand for computer components, have complicated both supply and manufacturing costs. Console prices are meaningfully higher than previous generations, and that is having a real effect on buyer behaviour, especially in the U.S.

Looking ahead, Nintendo has a lineup of first-party titles that fans are hoping will turn things around. Super Mario Bros. Wonder Nintendo Switch 2 Edition is due on March 26, followed by Tomodachi Life: Living the Dream in April and Yoshi and the Mysterious Book in May.

Further down the road, titles like Fire Emblem: Fortune's Weave, Rhythm Heaven Groove, and Pokémon Champions are listed for 2026, with From Software's Switch 2 exclusive The Duskbloods also generating genuine anticipation.