KillBaitNintendo Plans to Manufacture 20 Million Switch 2 Consoles in FY27 Amid Cost Pressures
📰 Original title: Nintendo to produce 20 million Switch 2s in FY27, exceeding sales forecast by 21%
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Nintendo Plans to Manufacture 20 Million Switch 2 Consoles in FY27 Amid Cost Pressures
Nintendo has announced plans to manufacture up to 20 million Switch 2 consoles during fiscal year 2027, exceeding its previous shipment forecast by approximately 21%. Sources indicate that despite earlier production cuts earlier this year—from 6 million to 4 million units due to cost and supply chain concerns—Nintendo remains confident in strong consumer demand. In its earnings report, the company initially projected shipping 16.5 million units, but this new manufacturing target demonstrates optimism about market appetite. The Switch 2 has already outpaced the original Switch in comparable launch-period sales, with nearly 19.86 million units sold in FY26, surpassing Nintendo's prior estimate of 15 million units. Despite high sales volumes, profit margins for the Switch 2 have been squeezed due to inflation, production costs, and global supply issues, including RAM shortages. To address these pressures, Nintendo implemented a price increase during Q2'27 and introduced promotional bundles, such as the $499 “Choose Your Own Game” offer. The console has sold out in several domestic retailers, especially in Japan during Golden Week. Nintendo's strategy reflects a careful balancing act between maintaining profitability and meeting robust consumer demand during a turbulent market period.
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