Rising Costs Push Nintendo to Shorten Game Dev Cycles

Nintendo has announced it will streamline development timelines for certain game projects as a strategy to mitigate the growing risks in game production as it transitions into the Switch 2 era.

According to Nintendo president Shuntaro Furukawa, escalating development budgets fueled by larger-scale projects and higher-fidelity games, combined with rising product costs for consumers, are amplifying the inherent risks of the game business.

To counter this, Furukawa stated that Nintendo is exploring the possibility of developing certain software within shorter timeframes.

In a recently translated Q&A with investors, Furukawa acknowledged that resource-intensive projects are driving up development expenses. While increasing retail prices could help offset these costs, he noted that doing so might reduce the number of players able to afford the games.

Furukawa explained, "Modern game development has grown in both scale and duration, leading to significantly higher costs. The game industry has always carried substantial risk, and we recognize that rising development expenses are intensifying that risk."

The Nintendo Switch 2 launched alongside Mario Kart World, the company’s first-ever $80 game. This follows Nintendo's move in the previous generation to price major titles like The Legend of Zelda: Tears of the Kingdom at $70.

Nintendo previously defended the pricing of Mario Kart World, clarifying that its value justified the cost and that it does not set a new standard for all future releases. The company emphasized its commitment to variable pricing, as seen with the $10 mini-game collection Nintendo Switch 2 Welcome Tour and the upcoming $70 title Donkey Kong Bananza.

Furukawa also highlighted Nintendo's ongoing effort to deliver the unique gameplay experiences fans expect, while keeping development budgets manageable and games affordable.

He added, "Our development teams are exploring various methods to preserve our creative philosophy despite the increasing scope and duration of projects. We consider it essential to invest strategically in tools and processes that enhance development efficiency."

One approach under consideration is reducing project scope to enable faster development cycles, allowing Nintendo to produce engaging games more economically.

"We believe it’s feasible to create games with shorter development periods that still deliver a sense of novelty to players," Furukawa concluded. "This represents a potential response to the challenge of rising development costs and software prices, and we are actively investigating it across the company."

Nintendo has faced some criticism 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 also applied a $10 upgrade fee for both The Legend of Zelda: Breath of the Wild and Tears of the Kingdom, and will require a $20 payment from Super Mario Party Jamboree owners to access the Switch 2 version with additional modes.