Nintendo ramps up Switch 2 production as demand grows

Nintendo has asked suppliers to assemble about 20 million Switch 2 consoles for the fiscal year ending March 2027.

That target is about 20% above Nintendo’s public sales forecast of 16.5 million units.

The production plan is not final and could change with demand.

Nintendo sold 19.9 million Switch 2 consoles in the fiscal year ended March 2026 after initially forecasting 15 million units.

The company has also announced a global Switch 2 price increase to US$500 in September from US$450, citing higher costs for parts including memory.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Early Switch 2 sales put those targets in context. Hardware sell-through has already moved past the original Switch’s first full year 1.
Demand also fits Nintendo’s long-held rule against selling hardware below cost, a stance analysts cited as questions around profit and pricing grew 2.
Nintendo earlier raised the Pro Controller price by US$5 after the Trump administration announced new tariffs on imports. About 512,000 buyers in the U.S. still picked up the US$85 accessory in the system’s first month 3.

Memory costs behind Nintendo’s price increase are part of a wider trend. Analysts expect Sony and Microsoft to face higher parts prices as existing inventory runs out 4.
That squeeze may reach shoppers through console price increases or steeper prices for games, services, and accessories 4.
At Nintendo, hardware momentum feeds the digital business. In FY2026, digital sales reached 407.6 billion yen (US$2.56 billion), equal to 54.6% of total software sales 1.
A larger install base also gives Nintendo Switch Online, Nintendo’s paid membership service with annual plans, more room to grow recurring revenue beyond one-time game purchases 5.