Nintendo 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 United States.
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.
After a record-setting debut in June, sales of the Switch 2 have failed to meet Nintendo management’s high expectations. Though demand for a lower-priced but unprofitable variant in Japan has remained strong, sales in the U.S. haven’t met with similar continued success.