Monday, November 29th, 2021

Nintendo makes a huge investment in game development and online infrastructure

Image: Nintendo Life

Throughout the Switch generation, Nintendo has benefited from profitable and sustainable profits and is clearly in a “cash-rich” position.In most of them Presentation of recent financial reports It currently outlines a bold plan to make significant investments in three key areas.

It is important to note that this money is in addition to standard investments in areas such as R & D. Therefore, this is a real sign of the company’s intentions. It was disassembled below.

Games-Expansion of “Game Software Framework”-Up to 100 billion yen (about 880 million US dollars)

Nintendo states that this is primarily money to “organically expand” game development assets and creative culture. It does not rule out mergers and acquisitions, but it is clearly expected to grow internally as a priority over buying other studios and businesses.

Non-gaming entertainment-a Mario movie-like opportunity -Up to 50 billion yen (about 440 million dollars)

It focuses on development and software opportunities that go beyond the core gaming business, but there is a crossover to the core business. For example, projects like Super Mario movies, partnerships like Lego, and other interactive products.

Nintendo Account and Infrastructure-Expanding Consumer Relationships-Up to 300 Billion Yen (Approximately US $ 2.64 billion)

This is a huge amount of money with interesting goals, especially in light of criticisms about Nintendo’s online and account offerings. The focus is on “maintaining and expanding” relationships with consumers, and Nintendo Account provides “a better experience and better service.” It seems that it is not only focusing on the transition to digital, but also aiming to build a “unique Nintendo service infrastructure”, but My Nintendo and its products will also be reviewed as part of the investment.

After all, Nintendo is investing a bit down $ 4 billion Its entertainment products and services as a whole are extra, and it certainly can be important in the medium to long term.

What do you think of this update-are you excited about this additional planned investment from Nintendo?