Nintendo is investing huge amounts of money in the research and development, something common when you are working on a new console. As pointed out by the senior analyst Daniel Ahmad | through his twitter account, Nintendo gast $ 880 million in R&D over 12 months that ended on March 31, more than in any other fiscal year.
Nintendo continues to invest heavily in R&D.
In FY2020/21 it spent approximately $880 million on R&D, more than any prior year.
Although I will note that this represented 5.3% of total revenue, which is a lower percentage than prior years, because of strong rev. growth. pic.twitter.com/RVgVg14uQs Daniel Ahmad (@ZhugeEX) May 6, 2021
This very morning Nintendo has published its latest financial results, which have turned out to be among the best in recent years thanks to total sales of almost 85 million Nintendo Switch globally. During a question and answer session among investors after the data was released, Nintendo has taken the opportunity to comment on the considerable expenditure on R&D (research and development).
Nintendo is investing significant amounts for the research and development of new hardware
According to Nintendo, the main reason why there has been a considerable increase in investment in R&D has been because Switch software and outsourcing costs are increasing. Since the console is in the middle of its life cycle, Nintendo has mentioned that it also you need to invest in the development and research of your next console. Could it be the so rumored Nintendo Switch Pro that has been playing for so many months?
Regarding the details of this future console, Nintendo clarifies that following the strategy of sell hardware and software (physical and digital) as we know it today. However, last year they mentioned that they were evaluating streaming technology for video games, something that the same Shuntaro Furukawa, president of Nintendo, clarifies that it is somewhat far from becoming a standard for the company. David Gibson, analyst and investment advisor in Japan, tells us in his thread.
A: Investing in online as well. Although mid way through Switch cycle it is necessary to invest in the next platform, where hardware and software integrated will continue. David Gibson (@gibbogame) May 6, 2021
In order to Nintendo, building dedicated hardware to deliver all kinds of unique and innovative experiences is your top priority. It is essential that quality entertainment is ahead of everything else. Furukawa remember that to create a single console, hardware and software teams have to make a lot of preparations several years in advance. The deciding factor in greenlighting new hardware is whether it offers something different and fresh.
Nintendo Switch It has been in the market for more than 4 years and is reaping record figures since its departure. Despite his irreproachable success, in Nintendo they never stop and keep exploring new ways to surprise users. What do you think it would be or how would you like the new Nintendo console to be?