Nintendo President Talks About What They Plan To Do With Their Vast Cash Reserves

Nintendo has plenty of money stockpiled and Japanese publication The Nikkei asked Nintendo president Tatsumi Kimishima what he plans to do with it. He says that they generally pour their money into research and development to come up with the next hit for the general public. He also says that they may consider investing outside the company.

“The technological advancement in the world is fast. While we’re looking at front-end technology, we’re always thinking about the future of Switch. Recently, even though we had decreased profit for eight years straight, we kept investing in R&D (research & development). Because we had a lot of funds, we were able to develop the Switch and completed a lineup of appealing games in the first year. Producing explosive hits is Nintendo’s value of existence. There are many interesting technologies in other companies outside Nintendo. If it’s possible to merge them with our company’s technology, we will also consider investing outside.”

Source / Via



    1. They have enough money to run in deficit for a rather long time. Thing is, if the Switch ended up like the Wii U, Nintendo may have had a difficult chance at gaining the interest of the consumer with their next console iteration.

      Liked by 1 person

    1. Financial death was not the main scare for many… Nintendo had over $20bn in reserved cash. So that’s enough to keep things moving.
      The death we feared was a death of interest in Nintendo hardware. Wii was successful but it didn’t sit well with hardcore gamers… We all know how things went with the WiiU. The Switch hit the sweet spot and that’s why it’s selling so well. I hope they maintain the Switch formula though… If they can combine the Switch with cloud gaming or some other high spec mobile HD graphics card, it could be a winning formula for years to come.

      Liked by 2 people

      1. With Nvidia’s help and partnership, that’ll be possible and I know some fools say “Nintendo has no exclusive rights to Nvidia hardware/Nvidia is not into the gaming market/Their partnership won’t last long”. With Nvidia getting a healthy share of profit from Nintendo selling the Switch like crazy, I’m damn sure Nvidia won’t let that money maker go and would probably make more powerful mobile graphic/CPU chips for them tailored for the Switch. X1 is already flying off shelves thanks to that and no thanks to their own Shield which is not selling remotely well.

        Liked by 1 person

  1. Good thing the Switch is a success. Even with all of that money, I don’t think they could go another console gen that was a failure. Even if Switch being a failure wasn’t enough to wipe them out of money & they could make another system after it also failed, the damage to their reputation would be done. In spite of the Wii’s success, Wii U proved that Nintendo’s actual fanbase didn’t increase that much from the Gamecube era during the Wii era and actually shrunk since then. The Wii U & Switch both being failures would have most likely made the fanbase shrink further from 13m to 10m, if not further. So the console after Switch, unless it took off like a lightning bolt (like Switch is doing right now), would have been their Dreamcast: their final console as they either go handheld only (where they seem to flourish very well) or they would have gone 3rd party.

    Of course, that future is not happening since the Switch isn’t a failure like the Wii U was and is doing quite well.


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