Nintendo Slashes Switch 2 Production by 30% Amid Weak Demand

Key Facts

1Nintendo slashed Switch 2 production by over 30%, from 6 million units to 4 million units.

2Nintendo shares in Tokyo fell nearly 5% following the report.

3The cut is attributed to soft holiday sales in the U.S. and rising memory chip costs squeezing margins.

Nintendo has significantly revised its production targets for the Switch 2 console, cutting output by over 30% from 6 million to 4 million units. The decision follows underwhelming sales performance during the critical U.S. holiday season, which failed to meet the company's initial projections. Additionally, rising memory chip prices are reportedly squeezing profit margins, forcing the Japanese gaming giant to scale back its manufacturing ambitions. Following the report, Nintendo shares in Tokyo dropped nearly 5% as investors reacted to the deteriorating outlook for the flagship hardware. Analysts suggest that such a substantial production cut in the product's first year signals a significant loss of market momentum. Furthermore, the lack of a robust software pipeline has been cited as a primary factor contributing to the cooling demand in key Western markets.