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Nintendo relies on organic growth of development resources – SHOCK2

Nintendo relies on organic growth of development resources – SHOCK2

In a Q&A session as part of Nintendo's current annual report, Shuntaro Furukawa, Nintendo's president and CEO, was asked about the long-term strategy for developing new games for the Nintendo Switch and its successors.

The Nintendo way

As Furukawa explains, the game development process has inevitably become longer, more complex and more advanced. Although acquisitions are always a way to leverage resources, Nintendo is actively expanding its development resources and investing in talented employees to strengthen its position as a leading provider of innovative and unique gaming experiences. It is important to Nintendo that developers gain a deep understanding of Nintendo's way of thinking and game development methods.

Thus, in line with Microsoft's Xbox strategy, Nintendo relies on organic growth to increase its development resources. It is a path that PlayStation has also followed successfully until Jim Ryan's service gaming initiative.

Shuntaro Furukawa (President and CEO, Member of the Board of Directors)

Question: I'd love to hear your thoughts on your resources for game software development. They will announce their software slate for the second half of 2024 in a Nintendo Direct in June, but after the first half the slate looks weaker than usual. Have a significant portion of your development resources already been diverted to the Nintendo Switch successor? I would also like to hear more about your long-term strategy for expanding your development resources.

Answer: Developing a replacement hardware for Nintendo Switch requires years of preparation, so of course there are many aspects to consider in terms of software development resources. But we are continuing to develop software for Nintendo Switch and will announce more about our upcoming software slate at Nintendo Direct in June.

We have continually expanded our development resources in recent years by recruiting university graduates and career changers. We will continue to work actively to secure the development resources necessary to increase the long-term value of our intellectual property and continually deliver unique entertainment offerings. Although development resources may be expanded through mergers and acquisitions, we will initially work internally with our developers who fully understand and have built the Nintendo brand over the years to cultivate talent that can drive future Nintendo development. In addition, many of our external development partners have gained a deep understanding of Nintendo's mindset and game development methods over many years of cooperation, and we would like to strengthen our relationships with these partners. The game development process has inevitably become longer, more complex, and more advanced. It is important for Nintendo to provide consumers with new and unique experiences through game development, so we will actively invest in expanding our development resources.

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