Nintendo Cuts Switch 2 Production by One-Third Due to Weak U.S. Sales

According to a report, Nintendo is significantly reducing its production targets for the Switch 2 due to disappointing sales in the U.S. The console’s performance during the holiday season fell short of expectations, prompting Nintendo to cut its planned production for this quarter from six million units to four million.

While predicting market trends can feel like guesswork, Nintendo’s initial optimism was fueled by the Switch 2’s remarkable launch, where it sold an impressive 3.5 million units in just four days and reached 10 million within four months, marking the most successful console launch ever. However, just before the holiday season, sales across the board stagnated. Despite initially outpacing the original Switch, the Switch 2’s sales during its first Christmas were 35 percent lower in the U.S.

The reasons for this downturn are not entirely clear, but it likely stems from a mix of economic challenges, higher console prices due to tariffs, and a lack of major game releases to drive sales. Without a new Zelda title, no mainline Pokémon game, and the ongoing absence of a significant Mario release, the Switch 2 seems to be losing some of its appeal.

In February, Nintendo’s stock took a hit, despite decent sales figures for the new console, which fell short of the highest expectations. The 11 percent drop was puzzling at the time but was linked to concerns over tariffs and rising costs for RAM and GPUs. With the recent news of reduced production, shares dropped another 6.3 percent in Tokyo.

The U.S. market appears to be particularly challenging for Nintendo. Sales in Japan remain strong, often exceeding supply, and while Europe is not performing exceptionally, it is meeting expectations. In contrast, the U.S. market has not embraced the console sequel as anticipated, with the PS5 continuing to outperform the Switch 2, despite being six years old and lacking a robust lineup of exclusives.

Pokémon has been a saving grace, with Pokémon Legends: Z-Agave providing some momentum toward the end of 2025, and Pokopia performing better than expected recently. However, these titles have not been enough to support the planned production levels. A strategist noted that the hardware shortfall during its first year, especially in the crucial holiday season, is concerning, highlighting a lackluster software lineup.

Nintendo is known for its secrecy, and details about upcoming projects are scarce. There’s no indication of why the Switch 2 launched with a new Donkey Kong title instead of a new Super Mario game, nor any information on how the company plans to follow up on The Legend of Zelda: Tears of the Kingdom. Just the announcement of either would likely boost interest in the hybrid console, especially with the apparent delay of a new mainline Pokémon game. Additionally, Mario Kart World seems to have faded into the background, with few significant updates in its first year.

While this situation is not a disaster—the Switch 2 has sold exceptionally well, and Nintendo is on track to meet its goal of 20 million sales in the first year—the current trends are concerning. It feels like something needs to change soon to prevent the situation from worsening.