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Nintendo Is Slashing Switch 2 Production by 33% — Here’s Why

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Why This Matters

Nintendo's decision to cut Switch 2 production by 33% highlights challenges in maintaining demand and managing rising costs in the gaming industry. This move signals potential shifts in consumer interest and supply chain pressures that could influence future console releases and pricing strategies. For consumers, it may impact availability and pricing of the Switch 2 in the near term.

Key Takeaways

Looks like Nintendo is switching things up. The gaming giant is slashing Switch 2 production by 33% this quarter, cutting output from 6 million units to 4 million in response to weakening demand in the U.S., according to Bloomberg.

The production cuts are surprising given that the Switch 2 had the fastest-selling console launch in Nintendo’s history, moving 3.5 million units in its first four days last June. But Nintendo president Shuntaro Furukawa said last month that “overseas sales were somewhat weaker than expected.”

The reduced production is expected to continue through April, but Nintendo is confident it will hit its target of selling 19 million Switch 2 by the end of the March. The company is also dealing with rising memory prices that are increasing production costs, and it’s considering whether to raise console prices.