Nintendo is cutting the release of the Switch 2 after a strong debut, but weak sales in the United States are causing the model to stumble.

Switch 2: From a bright debut to production cuts

Period Plan Reality Quarter 1 (from March) 6 million units 4 million – reduced by 1.5× Current quarter Continued restriction Expected maintenance of the 4 million level
Why Nintendo cut the plan—First sales: after the high‑profile launch of Switch 2 (June 2023) sales volumes were record‑setting, but in subsequent months demand fell—especially in the U.S. market.

- International market: In Japan the console sells well thanks to the budget model, but it does not bring profit.

- Market reaction: Nintendo shares dropped 6.3 % after news of production cuts; over six months from February they have lost 40 %.

Company strategy—Wait‑and‑see stance: Nintendo is not increasing production until it sees results from the first weeks of new game sales.

- Fiscal year (ending this month): Analysts forecast about 20 million Switch 2 consoles sold, despite declining demand.

- Supply and pricing: Rising component costs did not become a factor limiting output; the company could raise prices later, but volume reductions are solely due to falling demand.

Current status—Debut: June 5 of last year—the most successful Nintendo console in terms of first‑week sales (17.37 million units).

- Future: Further success will depend on the quality of new games. If popular releases fail to meet expectations, Nintendo could quickly launch new versions of the console.

European market and global challenges—For Europe a model with a swappable battery is planned, which could stimulate production even amid current supply issues caused by events in the Middle East.

- Autumn sales results will heavily depend on the release of GTA VI and Nintendo’s ability to maintain prices amid memory inflation.

> Conclusion: Nintendo remains optimistic about the long‑term popularity of Switch 2 but is currently limiting output due to declining demand and plans to adjust strategies after analyzing the first weeks of new game sales.