Nintendo Cuts Production of Switch 2 by Over 30% on Weak Holiday Sales:
Quote Originally Posted by Bloomberg
Nintendo Co. is cutting back the production of Switch 2 after demand for the $450 gaming console trailed the company's expectations during the year-end holiday season, particularly in the US.

The company plans to make 4 million units of its flagship device this quarter, a third less than the 6 million it had originally planned to produce, people familiar with the matter said. The reduced output rate is set to continue in April, the people said, asking not to be named as the figures aren't public

The successful launch of Pokémon Pokopia hasn't prompted the management to again accelerate production of the Switch 2. Instead, it's waiting to see if the hit game and other new titles have enough staying power to merit an output increase, the people said.

The output cut shouldn't affect Nintendo's ability to meet the average analyst estimate of about 20 million Switch 2 units sold in the fiscal year through this month, the people said.

The Switch 2 also faces cost pressures, including rising memory chip prices that has hit electronics manufacturers across the planet. While the higher semiconductor cost has led Nintendo to consider raising the device's price — as reported by Bloomberg last month — it hasn't played a role in the decision to curb output. The production cuts are driven by slower demand from consumers, the people said.