Nintendo has reportedly requested its suppliers to manufacture a staggering 25 million units of the Switch 2 console by the end of March 2026. This ambitious production target positions the company for unprecedented first-year sales, potentially setting new benchmarks within the global gaming industry.
Sources familiar with Nintendo’s plans indicate that the Japanese gaming giant is urging its manufacturing partners to significantly increase output. This ramp-up is crucial as the company anticipates robust demand throughout the upcoming holiday season and well into the new year. While assembly for the Switch 2 commenced towards the end of 2024, Nintendo reserves the right to adjust these production figures as they gain clearer insights into market demand during the crucial holiday shopping period.
Based on shipping projections from its assembly partners, Nintendo is expected to comfortably exceed analysts’ current sales estimates of 17.6 million devices for the fiscal year ending March. The company could sell approximately 20 million Switch 2 units this fiscal year, with any remaining inventory rolled over into the subsequent fiscal year.
Following this news, Nintendo’s shares, traded in Tokyo, saw a positive swing, closing up 2.6 percent on Friday after initially experiencing losses. This aggressive production strategy highlights Nintendo’s determination to ensure the flagship device’s success and avoid pitfalls encountered by competitors.
The future of Nintendo is heavily reliant on the success of the $450 Switch 2. Recognizing this, the company significantly increased its marketing expenditure surrounding the console’s June launch, aiming for a strong start out of the gate.
Over the past year, shares of the Kyoto-based company have soared by more than 50 percent, fueled by impressive early sales of the new hardware. Despite a recent cooling off from successive highs, Nintendo is still projected to announce a 68 percent increase in quarterly revenue next month. Many analysts anticipate that the company will revise its annual forecasts upwards, including those for the Switch 2.
When approached for comment, Nintendo did not offer a statement.
In the United States, Nintendo’s largest market, sales figures for the Switch 2 are reportedly trending 77 percent higher than those of the original Switch when it launched in 2017, according to research by Circana. This suggests Nintendo is on track to easily surpass its conservative Switch 2 sales projections, with plenty of time to spare. The company is actively pursuing all avenues to maximize sales and maintain excitement in the critical initial months post-launch, including steadfastly holding the new console’s price despite new US tariffs.
Nintendo has seemingly learned valuable lessons from the challenges faced by Sony Group and Microsoft. The launches of their most recent consoles during the pandemic were hampered by severe supply chain disruptions, which restricted availability and stunted overall growth. In contrast, the Switch 2’s creators ensured ample stock for its initial release and plan to sustain a high production rate. A significant advantage for the new console is its backward compatibility with the entire existing Switch game library, providing a vast software ecosystem from day one.
While maintaining such high production levels is ambitious, it does carry inherent risks for Nintendo, such as a potential decrease in demand due to broader macroeconomic instability. However, this currently seems unlikely, as a considerable number of consumers are still eager to acquire a Switch 2, and stores in various markets are not yet fully stocked. Even minor criticisms regarding its new game-key cards have done little to dampen consumer enthusiasm. Furthermore, the upcoming launch of Pokémon Legends: Z-A this month is expected to provide another powerful incentive for Switch 2 purchases.