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Throughout the Switch generation Nintendo has benefitted from a lucrative period of sustained profits, putting it in a distinctly ‘cash-rich’ position. In its most recent financial reports presentation it’s now outlined bold plans to invest significant amounts of money in three key areas.
It’s important to note that this money is in addition to standard investment in areas such as research & development, so it’s a real sign of intent on the company’s part. We’ve broken it down below.
Games – Expand ‘Game Software Frameworks’ – Up to 100 billion Yen (approx $880 million USD)
Nintendo has stated this is primarily money to ‘organically expand’ its game development assets and creative culture. It doesn’t rule out merges and acquisitions, but clearly the hope is to grow internally as a priority above simply buying other studios / companies.
Non-Game Entertainment – Opportunities Similar to the Mario Movie – Up to 50 billion Yen (approx $440 million USD)
This will be focused on development and software opportunities beyond the core game business, but with crossover to the core business. For example projects like the Super Mario movie, partnerships like LEGO and other interactive products.
Nintendo Accounts and Infrastructure – Expand Relationship With Consumers – Up to 300 billion Yen (approx $2.64 billion USD)
This is a huge sum of money with an interesting goal, especially in light of criticisms around Nintendo’s online and account offerings. The focus is ‘maintaining and expanding’ the relationship with consumers, with Nintendo Accounts to offer ‘better experiences and better services’. Beyond just being focused on the move to digital, it’ll apparently aim to build a ‘uniquely Nintendo service infrastructure’, while My Nintendo and its products will also be reviewed as part of the investment.
All told, then, Nintendo is investing a little under $4 billion USD extra across 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 additional planned investment from Nintendo?
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