Nintendo Switch 2
After a strong launch, the Switch 2 is now facing declining demand in key markets, prompting a major production adjustment. nintendo.com

For failing to hit its sales mark during the 2025 holidays, Nintendo may have to cut down their target of producing 6 million Nintendo Switch 2 units for the second quarter of 2026. This is despite the success that Pokémon Pokopia, the cozy new adventure and life-simulation game launched for Nintendo Switch 2 this month.

After a strong start dating back to June 2025, when more than 17 million units were sold, the succeeding months became erratic. Sales in Japan remained high, but the same could not be said for other regions.

Given the current market conditions and failing to hit its sales mark last December, Nintendo is left with no recourse but to alter their sales target for the second quarter. From that 6 million unit production target, Bloomberg reported that it has been lowered to 4 million, one third less than the original target.

The Reason Behind The Switch 2 Dip

A potential reason behind the sudden diminishing demand could be the rising cost of memory chips. However, Bloomberg pointed out that this is not to be blamed. The reality is that consumer demand for the Nintendo Switch 2 has waned since its huge launch in June last year.

Hence, lowered manufacturing output for the second quarter of the year could affect the overall target of the company for 2026. However, Bloomberg reported that it may not be the case. The strategy is seen more as correcting expectations for the year, although investors may frown at this development.

Beyond that, there are other factors to consider. One could be because Nintendo produced too many when the Nintendo Switch 2 was released. As of December 31, the company had sold roughly 17.37 million Nintendo Switch 2 units, according to Nintendo.

Another potential reason behind the sudden decline in demand for the Nintendo Switch 2 is the tariffs set by US President Donald Trump. Consumers may have resorted to buying their own consoles early to avoid added costs brought about by import taxes.

More Woes Ahead For Nintendo

Although it was mentioned earlier that the rising cost of memory chips is not to blame for the lacklustre demand of the Nintendo Switch 2, it still looms as a problem moving forward. At some point, RAM and storage chip prices will post a problem for the Japanese company.

Once that happens, Nintendo may be left with no choice but to increase the price of the Switch 2, which currently retails for about $450 (£338). Considering sales at present are declining at the current SRP, potentially increasing the price is likely to turn consumers away.

Finally, there is the question of game titles that can be played on the Nintendo Switch 2. Pokémon Pokopia may be a hit now. However, it remains that some players will be looking for alternative titles to play on the device.

The holidays did not see any major title released with most already coming out beforehand. Looking ahead, there is no telling what new titles will help boost sales of Nintendo.

One game title that has been eagerly awaited is Grand Theft Auto VI. However, its release is set near the next holidays, meaning Nintendo cannot rely on the much-awaited installment to drive up sales numbers.

Hence, cutting Nintendo Switch 2 production for the second quarter of 2026 is a logical move. However, does it follow that the third and fourth quarters will be adjusted as well?

The next couple of months will be strenuous for Nintendo. Things could get better in the succeeding months although management is likely busy now trying to figure out how to hit sales numbers and keep the Nintendo Switch 2 afloat.

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