Nintendo Allegedly Reducing Switch 2 Production, But There’s No Need to Worry Just Yet
Nintendo has reportedly scaled back production of the Switch 2 after it didn’t quite hit sales targets during the holiday season. According to sources, the company plans to produce 4 million units this quarter, down from an initial estimate of 6 million.
This news comes as a bit of a surprise, especially since the Switch 2 has been breaking records. It’s currently the fastest-selling console ever, with 17.37 million units sold by the end of 2025—10 million more than the original Switch in the same period. Titles like Mario Kart World have sold 14 million copies, and exclusive games like Pokémon Pokopai are boosting its appeal. The day-one release of Resident Evil Requiem also puts the Switch 2 on par with the Xbox Series X and PlayStation 5 for the biggest game of the year so far.
Despite these achievements, there’s concern among investors that Nintendo hasn’t adjusted its sales target of 19 million Switch 2 units for the fiscal year. Traditionally, the company sets conservative estimates and then raises them as sales improve. During its last financial report in February, Nintendo acknowledged that North American sales over the holiday were slower than anticipated.
Internally, there’s a discussion about whether the company’s efforts to ensure a strong launch inventory in June may have pulled forward demand that would have occurred later in the year. This speculation seems valid, especially since the end-of-year software lineup was relatively light. Major titles like Mario Kart World and Donkey Kong Bananza were released at launch, while holiday offerings like Metroid Prime 4: Beyond and Pokémon Legends: Z-A were also available on the original Switch.
Sources indicate that Nintendo remains optimistic about the long-term success of the Switch 2, but the recent slowdown has led to some alarm in the industry. One analyst described the holiday performance as “awful news” and warned that the upcoming release of Grand Theft Auto 6 in holiday 2026, along with the ongoing RAM crisis, could pose significant challenges. Nintendo is reportedly considering a price increase due to rising memory costs, but the analyst suggested that the company might need to absorb losses to maintain sales momentum.
While the RAM crisis is a genuine concern for all electronics manufacturers, the worries about the Switch 2’s software lineup seem exaggerated. For a console still in its first year, the game library is fairly standard; the standout titles just happened to be released early. Investors also lack insight into Nintendo’s future game releases, but many believe the company is keeping at least one major title for 2026—possibly a new Mario game—under wraps. Moreover, Nintendo has a strong fanbase that typically remains loyal, which could help it weather the storm of competition from GTA 6.
Overall, while Nintendo’s adjustment in production during the Switch 2’s impressive first year might raise eyebrows, it’s not necessarily a cause for alarm. However, as noted, the second year is crucial for building momentum, and how Nintendo counters the GTA 6 wave will be essential. Fire Emblem: Fortune’s Weave, while promising, may not be enough on its own. It will be interesting to see what other plans Nintendo has in store.
