Nintendo has asked suppliers to produce up to 25 million Switch 2 units by March 2026, setting a record for the company’s first-year sales of the console, which has reached high watermarks in the global gaming industry.
The Japanese company is asking its manufacturing partners to increase production, anticipating demand to persist through the upcoming holidays and New Year, according to people familiar with the matter. Nintendo, which starts assembling the Switch 2 around late 2024, may still adjust final production figures when it gets clearer demand during the crucial holiday shopping season.
As of now, Nintendo is likely to easily beat analysts’ expectations for sales of 17.6 million devices in the fiscal year ending in March, people familiar with the matter said, not to mention its own lower public forecasts. Based on shipment estimates from its assembly partners, Nintendo expects to sell about 20 million Switch 2 units this fiscal year, with all remaining consoles in stock for the next fiscal year.
The company’s Tokyo-traded shares reversed losses on Friday and rose 2.6%.
The ambitious production plan, which has never been reported before, shows that the entertainment giant is going all out to ensure the success of its flagship device and avoid the mistakes of its competitors. Nintendo’s future depends on the success of the $450 Switch 2, and the company has more than doubled marketing spending around its June release to ensure it gets off to a fast start.
The Kyoto-based company’s shares have risen more than 50% in the past year, driven by record early sales of new hardware. After hitting consecutive new highs, investor sentiment has cooled in recent weeks, but the company still expects quarterly revenue to rise 68% when it reports next month. Many analysts expect to raise their annual forecasts by then, including those for Switch 2.
Nintendo did not respond to a request for comment.
According to Circana research, in the United States, Nintendo’s largest market, sales are 77% ahead of the original Switch released in 2017, and Nintendo is likely to exceed its conservative Switch 2 expectations in a few months. The company is doing everything it can to maximize sales and excitement in the critical months after launch, including keeping the price of the new console stable amid new U.S. tariffs.
Nintendo has learned from the woes of Sony Corp. and Microsoft Corp., both of which have seen their recent pandemic launches suffer from supply chain disruptions that have limited availability and hampered growth. The creators of the Switch 2 have built ample supply for first-day sales and will keep production rates high for the foreseeable future. The inherent advantage of the new console is that it’s compatible with the entire Switch game library, giving it a massive software ecosystem from day one.
For Nintendo, maintaining accelerating carries risks, including the possibility that macroeconomic turmoil could trigger a drop in demand. For now, that seems like a distant prospect, as there are still many consumers waiting to buy a Switch 2, and stores in some markets are still running low on stock. Even some criticism of its new gaming key fob has done little to dampen enthusiasm. The release of Pokémon Legends: ZA this month will provide another potential catalyst for Switch 2 purchases.
© 2025 Bloomberg
