Nintendo has addressed the rising development costs in preparation for the launch of the new Switch 2 console and proposed new methods for managing these costs.
Development Cost Challenges
At a recent shareholders meeting, Nintendo President Shuntaro Furukawa acknowledged that games are becoming "larger in scale and longer in duration," resulting in higher costs. He noted that the gaming business is always risky, and these rising expenses increase that risk.
New Projects and Their Costs
The first-party lineup for Switch 2 demonstrates the company's ambition. For instance, Mario Kart World introduces an open-world layout to the long-running racing series, while Donkey Kong Bananza adds a destructive aspect to classic gameplay. The price for new games has been announced at $79.99, which is $10 higher than many typical Nintendo releases.
Nintendo's Future Strategies
Furukawa stated that the company is "devising various ways to maintain our traditional approach" to game creation. He emphasized the importance of investing in more efficient development and mentioned the possibility of creating smaller-scale titles with shorter development periods to help alleviate concerns over rising development costs.
Nintendo expresses confidence in its ability to adapt to rising game development expenses while maintaining its traditional model and developing new projects for the Switch 2.
