‘The true value of entertainment lies in its uniqueness:’ Nintendo is well aware that rising development costs are very bad news

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Promotional artwork via Nintendo

Nintendo president Shuntaro Furukawa said the company is exploring how to condense production cycles while still creating titles that offer a “sense of novelty.”

During a recent shareholder Q&A, Furukawa was asked how Nintendo intends to combat the risks associated with higher development costs following the launch of the Switch 2.

“I am concerned that the improved performance of Nintendo Switch 2 will lead to higher game development costs, which in turn could result in higher software prices and ultimately a decrease in the gaming population,” said one shareholder on the call. “What measures are you considering to address this?”

Furukawa acknowledged that recent production cycles have become “larger in scale and longer in duration,” which in turn has resulted in higher development costs. He claimed the game business has always been “high-risk,” but said Nintendo feels that rising development costs are only increasing that risk.

To address the situation, he explained Nintendo is “devising various ways to maintain our traditional approach to creating games amidst the increasing scale and lengthy of development.”

“We believe it is important to make the necessary investments for more efficient development. We also believe it is possible to develop game software with shorter development periods that still offer consumers a sense of novelty,” he continued. “We see this as one potential solution to the concern about rising development costs and software prices, and we will explore it from various angles within the company.”

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“It is crucial to foster an environment where developers can easily exercise their creativity”

During the call, Furukawa underlined Nintendo’s belief that “uniqueness” is the key to finding success in the video game industry.

When asked how the company intends to maintain and strengthen its culture moving forward, he said the company must avoid becoming complacent and work diligently to “deliver products and services that offer new surprises.”

“The most important aspect of our management is the belief that the true value of entertainment lies in its uniqueness. We repeatedly convey this message in various forms within the company to ensure it permeates, from long-serving employees to new hires,” he added.

“From a management perspective, we believe it is crucial to foster an environment where developers can easily exercise their creativity and new ideas. To ensure our continued growth, we are committed to passing on the ‘Nintendo DNA,’ which combines this spirit of originality with the flexibility to adapt to change and sincerity toward our consumers.”

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The shareholder meeting took place around one month after the launch of the Switch 2, which topped 3.5 million worldwide sales in four days to deliver the bigger console launch in Nintendo history. 

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