In a new report from Bloomberg, it’s been stated that Nintendo is cutting production of the Switch 2 in the US by over 30% this week following a weaker holiday season. The company had originally planned to produce six million units for the coming first quarter of 2026, but is now reducing the number to four million with the reduced output continuing into April.
While the Switch 2 is still doing quite well, the console has not met Nintendo’s high expectations. After debuting to record-breaking numbers in June 2025, it seems the higher cost of the console coupled with the economic uncertainty in the US has shrunk demand. In Japan, the Japanese-only, cheaper variant is selling well, but that doesn’t turn a profit for Nintendo.
In reaction to the news, Nintendo’s share prices fell 6.3% on the Tokyo Stock Exchange today. This is the biggest drop since February 2026, which isn’t great news after Pokémon Pokopia had managed to shift Nintendo’s favors briefly. Interestingly, Nintendo is playing the waiting game when it comes to Pokopia as it doesn’t want to overproduce consoles that will wind up sitting on retail shelves. Sources close to Bloomberg told the outlet that it’s waiting for another hit game to see if the console has enough staying power.
Amir Anvarzadeh, Japan equity strategist for Asymmetric Advisors, said to Bloomberg, “This hardware shortfall in its first year, during its big holiday season, is awful news. Clearly the software lineup has been poor, at least until most recently with Pokémon showing some hope.” Interestingly, analysts don’t believe this temporary roadblock will hinder the Switch 2’s chances of hitting 20 million units sold during its first fiscal year, however.
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Written by Peter Glagowski
Peter has been a freelance gaming and film critic for over seven years. His passion for Nintendo is only matched by the size of his collection.
