Why it matters: The Nintendo Switch 2 might be the fastest-selling console of all time, but that record-breaking launch is showing signs of slowing down. Because of its recent disappointing sales performance during the holidays, especially in the US, Nintendo has decided to reduce production of the console by a third.
According to a Bloomberg report, Nintendo will slash production of the Switch 2 this quarter from the originally planned six million units down to four million, a 30% drop. The reduced production is expected to continue into April.
The holidays is traditionally a major period for game and console sales, but this season didn't meet Nintendo's expectations. The lower-priced domestic version of the Switch 2 performed well, but US sales fell, leading to the production cut. Sources say rising prices and shortages stemming from the memory crisis were not factors in the decision.
Data from App Economy Insights
Bloomberg writes that one of the reasons behind the sales decline is believed to be the game lineup. Metroid Prime 4: Beyond was supposed to be the big holiday flagship that pushed more people into buying a Switch 2, but it struggled to sell one million copies in December, far below Nintendo's expectations.
The slowdown is a surprise because the Switch 2 has been a monster seller overall. As we reported in January, the machine closed out 2025 with 4.4 million units sold in the US, making it the fastest-selling home console launch in the country's history.
Nintendo's latest financial results were also strong on paper: Switch 2 hardware sales reached 17.37 million units worldwide by the end of December, and the company kept its full-year target of 19 million units unchanged.
Data from App Economy Insights
It seems that Nintendo is facing a cooling-off period after the Switch 2's explosive debut. The original Switch enjoyed a holiday season that turned it into a phenomenon, but the follow-up appears to be settling into a more normal sales pattern. A $450 price tag, pricier software, and economic uncertainty in some markets were always likely to test demand once the launch rush faded.
As we noted earlier this month, the original Switch has now overtaken the DS to become Nintendo's best-selling console ever, reaching 155.37 million lifetime sales. That leaves it second only to the PlayStation 2 on the all-time list.
Image credit: Petar