Nintendo Cites Cost Surge in Game Development Risks

Nintendo has stated it will shorten development cycles for certain game projects as a strategy to mitigate the growing risks in game production during its Switch 2 era.

According to Nintendo President Shuntaro Furukawa in a recent investor meeting, escalating development budgets—driven by larger-scale projects and higher-fidelity games, alongside rising consumer costs—are making the already "high-risk business" of game development even riskier.

To counter this, Furukawa mentioned Nintendo is exploring the creation of some game software within tighter timelines as a possible solution.

In a newly translated Q&A with investors, the company’s president acknowledged that projects demanding more time and resources are pushing development budgets upward. While recouping these costs through higher consumer prices is an option, it could reduce the number of people able or willing to purchase the games.

"Modern game software development has grown in scale and duration, leading to higher development expenses," Furukawa noted. "The game industry has always been high-risk, and we are aware that rising costs are amplifying that risk."

The Nintendo Switch 2 launched with the company's first-ever $80 game, Mario Kart World, a generation after it started pricing major titles like The Legend of Zelda: Tears of the Kingdom at $70.

In response to questions, Nintendo previously argued that Mario Kart World’s value justified its price and that it would not set a new standard for all titles. Instead, the company plans to use variable pricing—as seen with the $10 mini-game collection Nintendo Switch 2 Welcome Tour and the upcoming $70 blockbuster Donkey Kong Bananza.

Still, Furukawa emphasized that Nintendo is exploring ways to continue delivering the "novelty" fans expect while keeping budgets manageable and games affordable for as many players as possible.

"Our development teams are exploring various strategies to preserve our unique approach to game creation amid increasing project scale and duration," Furukawa continued. "We consider it essential to invest in measures that streamline development."

One such strategy involves shorter development cycles—suggesting Nintendo can maintain quality while possibly limiting a project's scope or scale to remain cost-effective.

"We also believe it’s feasible to develop games with shorter timelines that still deliver a fresh experience," Furukawa concluded, without providing specific examples. "We view this as a potential answer to rising development costs and game prices, and we’ll examine it from multiple angles within the company."

Nintendo previously faced fan criticism for pricing the Nintendo Switch 2 Welcome Edition at $10 instead of including it free, as with Wii Sports. The company also charged $10 for upgrades to both The Legend of Zelda: Breath of the Wild and Tears of the Kingdom, and will require Super Mario Party Jamboree owners to pay $20 to upgrade to the Switch 2 version with new modes.