Switch 2 Delay Fallout? Nintendo Confirms Testing Layoffs In Major Shakeup

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The Nintendo Switch has been an extraordinarily popular gaming console that has stood the test of time. First released in 2017, it has gone mostly unchanged save for the OLED model upgrades in 2021 (and the release of a Lite model). Recent changes at Nintendo of America concerning contractors who do the testing has resulted in layoffs and restructuring, however. The much anticipated Nintendo Switch 2 has had its fate rumored in the media for some time, especially concerning potential delays.

According to Kotaku, Nintendo of America said its testing apparatus will "involve some contractor assignments ending, as well as the creation of a significant number of new full-time employee positions".

It does not appear that these contractors were testing the Nintendo Switch 2 yet, and were likely previously busy with the more recently released titles for the existing Nintendo Switch. But who knows—it's possible they were play testing early prototypes.

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Nintendo has had notable major title releases the last several months such as Super Mario Wonder, and Princess Peach Showtime. It has also announced or released a few remastered titles, such as Super Mario RPG. The upcoming Paper Mario: The Thousand Year Door has also garnered interest from gamers with its improved graphical style tied to its nostalgic game play.

It is possible that Nintendo does not have too many major titles in the pipeline for a 2024 release, which would be one potential explanation for the diminished testing requirements. it is no doubt that the video game industry as a whole has experienced a significant number of layoffs in recent months, as the industry adjusts. 

Nintendo has also been well-known for resisting layoffs, especially Nintendo of Japan. Its willingness to convert some of these laid off contractors to full-time employees is also a plus, keeping them within the Nintendo eco-system for when more activity ramps up.

While there is no definitive connection to layoffs or a release date for the Nintendo Switch 2 yet, it will be one of the most anticipated consoles as expected from Nintendo.