Nintendo has officially confirmed plans to reduce Switch 2 production in the near future.

Since the launch of the Nintendo Switch 2 handheld console, Nintendo has faced numerous challenges. The challenging economic climate, leading to a sluggish holiday shopping season, has forced the company to cut 2 million Nintendo Switch 2 units this quarter in the US market.

Having become the fastest-selling console in history upon its release, the Switch 2 is gradually losing momentum due to several uncontrollable factors. According to Bloomberg, Nintendo initially aimed to produce 6 million Switch 2 units, but production has now been reduced to only 4 million. This adjustment represents a reduction of approximately 30% in production scale, and this trend is expected to continue until the end of April.

Back in the 2025 holiday season, Nintendo had a tough time. To put it into perspective, Switch 2 sales in its first holiday season after launch were 35% lower than its predecessor. More broadly, sales across the entire console market declined last year, largely due to unfavorable macroeconomic conditions.

This cost-cutting move means that Switch 2 sales in the US will be significantly lower in the near future compared to 2025. More worryingly, the prospect of a retail price increase for this handheld gaming console is also looming as the memory shortage continues to worsen.

Currently, the starting price of the Switch 2 is $450 for the standard version. If a price increase occurs, this could be pushed up to $500, matching the launch prices of the Xbox Series X and PS5. Although Microsoft and Sony's consoles now have more expensive versions, the PS5 Digital version is still selling for $500 on the market.