Nintendo Spent a Record Sum on R&D Last Year

Some of it was spent on the Switch's successor.

Posted By | On 06th, May. 2021

Nintendo logo

Nintendo spent a record sum of $880 million on research and development (R&D) for the Switch’s successor last year, according to the company’s latest fiscal reports, which were released on Thursday. The number was reported by Niko Partners senior research analyst Daniel Ahmad and covers that twelve months that ended on March 31st, 2021. While the number itself it the largest dollar amount the company has ever spent on R&D, it’s worth noting that this spending represented only 5.3% of Nintendo’s total revenue because revenue growth was so strong.

The company explained its reasoning in a Q&A, according to Japan-based analyst and investment adviser David Gibson, who provided an overview of the session on Twitter. Nintendo reported that the main reason for increased R&D spending was the increase in software and outsourcing costs. The company is also investing in its online service, and said that since the Switch’s lifespan is about half over, it was important to begin investing in the development of its successor, amidst rumours of a Switch Pro launch.

As far as the Switch itself, the system is continuing to sell well. In 49 months, the Switch has sold 84.59 million units. It is currently selling faster than both the Wii and PS4, and should reach 100 million units faster than both consoles. Perhaps more interestingly, the Switch is almost selling on pace with the Nintendo DS, which remains the second best-selling game console of all time, behind the PlayStation 2.


Tagged With: ,

Amazing Articles You Might Want To Check Out!

Share Your Thoughts Below  (Always follow our comments policy!)



Keep On Reading!

Marvel Rivals Announced – 6v6 PvP Shooter Receives PC Alpha Test in May

Marvel Rivals Announced – 6v6 PvP Shooter Receives PC Alpha Test in May

Playable characters include Spider-Man, Hulk, Magneto, Iron Man and many more, with Team-Up Skills and destruc...

PS5 Pro “Won’t Grow the Market”, Some Developers Don’t Understand “the Point of It” – Report

PS5 Pro “Won’t Grow the Market”, Some Developers Don’t Understand “the Point of It” – Report

"Developers didn’t feel they needed it, at least the ones I spoke to," says GamesIndustry.biz founder Christ...

Metal Gear Solid Master Collection Vol. 1 Update Adds Pause Menu to Metal Gear Solid 2 on PC

Metal Gear Solid Master Collection Vol. 1 Update Adds Pause Menu to Metal Gear Solid 2 on PC

Metal Gear Solid 3 on Steam also gets an Additional Settings menu with audio and screen options, mouse sensiti...

Stellar Blade – Combat, Cinematics and Bosses Revealed in New Demo Gameplay

Stellar Blade – Combat, Cinematics and Bosses Revealed in New Demo Gameplay

The demo goes live on March 29th for PS5 and features the opening sections. Progress carries over into the ful...

Microsoft Gaming CEO Discusses Having Epic Games Store and Other Storefronts on Xbox

Microsoft Gaming CEO Discusses Having Epic Games Store and Other Storefronts on Xbox

"Nobody would blink twice if I said, ‘Hey when you’re using a PC, you get to decide the type of experience...

Dragon’s Dogma 2 Guide: All Vocations, How to Unlock Them and Best Abilities

Dragon’s Dogma 2 Guide: All Vocations, How to Unlock Them and Best Abilities

Everything you need to know about mastering vocations in Dragon's Dogma 2.