As Nintendo enters the Switch 2 era, the company has stated it will limit development time on certain game projects to counter rising production risks.
Nintendo President Shuntaro Furukawa recently told investors that expanding development budgets, fueled by larger projects and higher-fidelity games, along with increased costs for consumers, are making the already "high-risk business" of game development even riskier.
To address this, Furukawa said Nintendo is exploring shorter development cycles for some software as one potential solution.
In a newly translated investor Q&A, the company's president acknowledged that more time- and resource-intensive projects are driving up development costs. While passing some of these costs to consumers is one option, it could reduce the number of people able or willing to purchase the games.
Furukawa stated, "Recent game development has grown in both scale and duration, raising expenses. The games business has always carried high risk, and we recognize that rising development costs are amplifying that risk."
The Nintendo Switch 2 launched alongside Mario Kart World, Nintendo's first $80 game, following a generation where major titles like The Legend of Zelda: Tears of the Kingdom were priced at $70.
Nintendo previously asserted that Mario Kart World's value justified its price and that it did not set a new baseline for all titles. The company instead emphasized flexible pricing—such as the $10 mini-game collection Nintendo Switch 2 Welcome Tour and the upcoming $70 blockbuster Donkey Kong Bananza.
Furukawa noted that Nintendo is exploring ways to maintain the novelty fans expect while keeping budgets manageable and games affordable for as many players as possible.
"Our development teams are working on various approaches to preserve our creative philosophy amid growing development scales and timelines," Furukawa added. "We believe strategic investments in more efficient development are essential."
One idea under consideration is faster development cycles—potentially limiting project scope while still offering players a compelling experience.
"We also believe it’s possible to develop games in shorter timeframes without sacrificing novelty," concluded Furukawa, who did not provide specific examples. "We view this as one potential response to rising development costs and game prices, and we are examining it from multiple angles within the company."
Nintendo previously faced criticism for pricing the Nintendo Switch 2 Welcome Edition at $10 instead of including it free like 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 for the Switch 2 version with new modes.
