Bloomberg reported on the 24th, citing sources, that Japan's Nintendo has decided to cut production of its new console, the "Nintendo Switch 2," by more than 30%. The move comes as U.S. sales fell short of expectations.
According to the report, Nintendo plans to produce 4 million units of the Switch 2 this quarter. That is a decrease of about more than 30% compared with the initially planned 6 million units.
The Switch 2, the successor to the "Nintendo Switch," is an ambitious project Nintendo unveiled in June last year. It drew attention in Japan even before its official launch in June last year, but actual sales in overseas markets such as the United States are said to be falling short of management's expectations. In particular, U.S. demand during the Christmas holiday season, when console demand peaks, fell short of expectations.
Accordingly, the production cut trend will continue next month, the sources said.
Bloomberg reported that Nintendo is also facing expense pressures, including rising memory semiconductor prices that have hit electronics corporations worldwide. It added that while Nintendo considered raising product prices due to higher semiconductor expenses, that did not affect the decision to cut production.