Nintendo Reduces Switch 2 Production Due to Disappointing Holiday Sales

Following underwhelming holiday sales, particularly in the United States, Nintendo has allegedly scaled back production of the Switch 2. Sources indicate that the company intends to manufacture four million units this quarter, a decrease from the initially planned six million. This reduced production volume is expected to continue into April. The console's sales failed to meet Nintendo's expectations, with the domestic variant performing well but US sales experiencing a decline. As a result, the company's share price plummeted by as much as 6.3%, reaching ¥8,835 ($55.72) per share. Earlier in the month, Nintendo's share price had surged 10.5% after the launch of Pokémon Pokopia. Despite the decision to decrease Switch 2 production, insiders claim that Nintendo remains optimistic about the console's long-term prospects. They also stated that rising memory chip prices and shortages did not influence this decision. Nintendo declined to comment on the matter. The Switch 2 had broken US launch records in June, selling over 1.1 million units, and by November, it had achieved the highest global sales of any Nintendo platform, with 10.36 million units sold. After Nintendo's financial results were released last month, the company's president, Shuntaro Furukawa, noted that hardware sales in Japan exceeded the rest of the market. Furukawa stated that the console performed 'better than expectations' following holiday sales of the lower-priced console, Pokémon Legends: Z-A, and Kirby Air Riders. Recent reports suggest that Nintendo plans to release a revised Switch 2 model in the EU with a replaceable battery, complying with 2023 EU legislation requiring all portable consoles to have replaceable batteries by 2027.