Assuming their sources are accurate, Nintendo is expected to boost production by an additional 2 million units for its current fiscal year that ends in March 2018. This brings the total number of units the company expects to produce up to 18 million, which is 2 million more than what the Wall Street Journal had previously estimated.
The reason for the boost? Obviously it is to meet demand, but it is also to prevent “custom tantrums” for the holiday season, where Nintendo is probably trying to prevent its customers from reacting negatively should the console run out of stock during the holidays. They are also looking to avoid a situation where the launch of Super Mario Odyssey in November is hampered by the lack of available Switch units.
Presumably this is because Nintendo is hoping that the launch of the game will encourage gamers to buy the console, much like how Zelda’s Breath of the Wild has had a near one-to-one attachment rate.