, posted on 05 November 2021 / 3,353 Views
The president of Nintendo Shuntaro Furukawa in the policy briefing for the earnings report revealed Nintendo plans to invest up to 100 billion yen ($881.8 million USD) to “expand its game software development frameworks inside the Nintendo group.”
Nintendo also plants to invest up to 50 billion yen ($440.9 million USD) in non-game entertainment and up to 300 billion yen ($2.65 billion USD) in a foundation for maintaining and expanding relationships with consumers.
“As a company that brings smiles through entertainment, Nintendo’s goal has always been to create original entertainment,” said Furukawa. “In a business with extreme fluctuations like the entertainment business, the basic policy of our financial activities has been to secure cash and other liquid assets so we can continually offer products and services that constantly deliver new surprises.
“While this basic policy will not change, the Nintendo Switch business has exceeded our expectations, putting us in a strong cash position in these last few years and presenting a good opportunity to reconsider how to most effectively utilize our cash in a variety of strategic and meaningful ways.
“Let me describe the field we plan to actively focus on from a mid- to long-term perspective, given the changes in our current business environment. These efforts will be made in addition to our conventional research and development and capital expenditures.
“The new fields where we will utilize our cash can be broadly classified under maintaining and expanding relationships with consumers.
“These software assets include games, and we aim to expand our game development frameworks inside the Nintendo group. We are not dismissing the possibility of M&A activities, but our first priority is to organically expand in our own organization to continue Nintendo’s creative cultures.”
A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let’s Plays and tutorials. You can contact the author at [email protected] or on Twitter @TrunksWD.