Nintendo to invest huge sums in game development and online infrastructure

Image: Nintendo’s Life

Throughout the Switch generation, Nintendo enjoyed a lucrative period of sustained profits, placing it in a distinctly “cash rich” position. In his most recent financial reporting presentation, he has now outlined bold plans to invest significant sums in three key areas.

It is important to note that this money is in addition to the standard investment in areas such as research and development, so it is a real sign of intention on the part of the company. We’ve broken it down below.

Games – Extending “gaming software frameworks” – Up to 100 billion yen (approximately 880 million US dollars)

Nintendo said it was mostly money to “organically grow” its game development assets and creative culture. This does not rule out mergers and acquisitions, but the hope is clearly to grow internally as a priority rather than just buying other studios / companies.

Non-Gaming Entertainment – Mario Movie Similar Opportunities – Up to 50 billion yen (approximately 440 million US dollars)

This will focus on development and software opportunities beyond the core business of gaming, but with a crossover with the core business. For example, projects like the Super Mario movie, partnerships like LEGO and other interactive products.

Nintendo Accounts and Infrastructure – Extend Your Relationships with Consumers – Up to 300 billion yen (approx. US $ 2.64 billion)

This is a huge sum of money with an interesting purpose, especially in light of the reviews regarding Nintendo’s online and account offerings. The aim is to “maintain and extend” the relationship with consumers, with Nintendo Accounts to provide “better experiences and better services”. Beyond just focusing on the digital switchover, it will apparently aim to create a “Nintendo-only service infrastructure,” while My Nintendo and its products will also be considered as part of the investment.

All in all, Nintendo is investing a little less US $ 4 billion in its entertainment products and services, which could indeed be significant in the medium to long term.

Let us know what you think of this update – are you excited about this planned additional investment from Nintendo?

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