Nintendo Warns of Growing Game Dev Risks Amid Higher Costs

Nintendo has announced plans to more closely manage the duration of certain game development projects as it transitions into the Switch 2 generation, citing rising production risks across the industry.

President Shuntaro Furukawa recently informed investors that escalating development budgets—driven by increasingly ambitious projects and demand for higher-fidelity games—are compounding the inherent risks of the video game business. He noted that these rising costs, paired with higher prices for consumers, make game development an ever more precarious undertaking.

To address this, Furukawa indicated that Nintendo is exploring faster development cycles for select titles as a possible countermeasure.

In a newly translated Q&A with investors, the company’s president acknowledged that projects demanding more time and resources are pushing overall development costs upward. While raising retail prices can help offset these expenses, it also risks narrowing the audience able and willing to purchase the games.

"Modern game software development has grown in both scale and duration, leading to higher production costs," Furukawa stated. "The games business has always carried significant risk, and we recognize that increasing development expenses are amplifying that risk."

The launch of Nintendo Switch 2 was accompanied by the company's first $80 game, Mario Kart World, following a generation in which major releases such as The Legend of Zelda: Tears of the Kingdom were priced at $70.

Nintendo previously defended the pricing of Mario Kart World by emphasizing its value, clarifying that it does not set a new standard for all future releases. The company instead pointed to its variable pricing strategy, which includes the $10 mini-game compilation Nintendo Switch 2 Welcome Tour and the upcoming $70 blockbuster Donkey Kong Bananza.

Still, Furukawa emphasized that Nintendo is seeking ways to preserve the unique gameplay experiences fans love, while ensuring budgets remain manageable and games stay affordable for the widest possible audience.

"Our development teams are exploring various strategies to uphold our creative philosophy in the face of growing project scope and longer timelines," Furukawa added. "We believe investing in tools and processes that enable more efficient development is essential."

One approach under consideration is creating games with shorter development cycles. By carefully scoping projects, Nintendo aims to deliver satisfying and innovative experiences without excessive cost or time investment.

"We also believe it’s possible to produce compelling game software on shorter timelines that still deliver a sense of novelty to players," Furukawa concluded, though he did not cite a specific example. "We view this as one potential response to escalating development costs and software prices, and we plan to examine it thoroughly across the company."

Nintendo has faced criticism in the past for its pricing decisions, such as charging $10 for the Nintendo Switch 2 Welcome Edition instead of including it for free like Wii Sports. The company has also applied $10 upgrade fees for both The Legend of Zelda: Breath of the Wild and Tears of the Kingdom, and will require a $20 payment for Super Mario Party Jamboree owners to access the enhanced Switch 2 version with additional modes.