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Shuntaro Furukawa Interview via Nikkei - Switch support until early March 2025 | Increase in in-house devs | Thought process behind acquisitions

Nikkei just had an interview with the president of Nintendo, Shuntaro Furukawa. The article is behind a paywall though: https://www.nikkei.com/article/DGXZQOUF295550Z20C23A8000000/?n_cid=SNSTWB&n_tw=1696277119

Luckily Universo Nintendo has translated some of the interesting tidbits into Portuguese, which were then translated into English using DeepL:
— How will you apply the "spirit of originality" to the Switch's successor?

Furukawa:
I can't talk about the specific topic. We are constantly researching and developing hardware, but for the fiscal year ending March 2024, our focus is on expanding the Nintendo Switch business. The biggest obstacle at any time, not just limited to the "Next Console", is knowing whether we can deliver something that customers really want.

— Can the Switch's lifecycle be extended further?

Furukawa:
We are still working on Nintendo Switch software for the fiscal year ending March 2025. The momentum will be sustained to continue to expand the Switch business. In the fiscal year ending March 2024, we will keep up the Zelda momentum and move into the holiday selling season. In terms of hardware, we will maximize demand not only for new purchases, but also for second units and replacements.

— Why are you increasing the number of in-house developers?

Furukawa:
Game development is becoming more sophisticated. The development resources required for single software continue to increase, so it is essential to strengthen the development organization. More than simply increasing the number of employees, we must be able to develop software that meets Nintendo's expectations. To this end, we decided that instead of allocating resources outside the company, it is necessary to reinforce our internal development resources, which have a deep understanding of the creative DNA and the Nintendo brand.

We do not reject the use of M&A (mergers and acquisitions) . However, if an organization that does not understand Nintendo's creative approach is brought into the fold, it may not produce the expected results. On the other hand, for companies with a similar development approach, we can form various partnerships with them, not limited to M&A.
 
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Flutta

Banned
Pedro Pascal Mario GIF
 

Hudo

Member
Nikkei just had an interview with the president of Nintendo, Shuntaro Furukawa. The article is behind a paywall though: https://www.nikkei.com/article/DGXZQOUF295550Z20C23A8000000/?n_cid=SNSTWB&n_tw=1696277119

Luckily Universo Nintendo has translated some of the interesting tidbits into Portuguese, which were then translated into English using DeepL:

Interesting. I think with regards to "preparing more Switch software ", he essentially means cross-platform games and smaller Switch games. I wonder what he means with "keeping up the Zelda momentum". Wind Waker HD and Twilight Princess HD ports or another "2D-Zelda"?

Growing internally instead of buying shit up seems like the most sensible approach for Nintendo because their strength is first-party. They have by very far the strongest first-party development out of all the "big three" and they know it.
 

Killjoy-NL

Member
Did they just subtly reject the idea of a MS acquisition?

Also, it seems that Nintendo is also slowly struggling with major sp-releases, or did I read that incorrectly?
 

Heisenberg007

Gold Journalism
"We do not reject the use of M&A (mergers and acquisitions) . However, if an organization that does not understand Nintendo's creative approach is brought into the fold, it may not produce the expected results. On the other hand, for companies with a similar development approach, we can form various partnerships with them, not limited to M&A."

Simon Cowell Wow GIF by America's Got Talent
 

Woopah

Member
Did they just subtly reject the idea of a MS acquisition?

Also, it seems that Nintendo is also slowly struggling with major sp-releases, or did I read that incorrectly?
They are not talking about being acquired themselves. They are talking about their approach to buying other companies.

I think the term "single software" is them saying it takes a lot of resources just to make one game. It's not a reference to single player.
 

Killjoy-NL

Member
They are not talking about being acquired themselves. They are talking about their approach to buying other companies.
Ah yh, my bad.
I think the term "single software" is them saying it takes a lot of resources just to make one game. It's not a reference to single player.
Yeah, that's what I meant. Poor wording on my part.
Nintendo has it's own specific game library.

What I meant was their major titles and how they handle the situation in comparison to Sony and MS, since they all would run into the same issues (albeit to a lesser extent I assume, since Nintendo isn't as invested in big budget AAA-gamin).
 
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Woopah

Member
Ah yh, my bad.

Yeah, that's what I meant. Poor wording on my part.
Nintendo has it's own specific game library.

What I meant was their major titles and how they handle the situation in comparison to Sony and MS, since they all would run into the same issues (albeit to a lesser extent I assume, since Nintendo isn't as invested in big budget AAA-gamin).
Well on average Nintendo already publishes more games than Sony and MS combined, but they are still impacted by the rising dev costs and time. A big part of how they able to do that is because that have a big group of partner studios, who they don't own but do work with very closely. This is what Furukawa means when he says "for companies with a similar development approach, we can form several partnerships with them, not limited to M&A."
 

Killjoy-NL

Member
Well on average Nintendo already publishes more games than Sony and MS combined, but they are still impacted by the rising dev costs and time. A big part of how they able to do that is because that have a big group of partner studios, who they don't own but do work with very closely. This is what Furukawa means when he says "for companies with a similar development approach, we can form several partnerships with them, not limited to M&A."
Makes sense and clearly it works for them.

I'm interested in their views on GaaS, as it's quite an interesting topic rn when it comes to MS and Sony. I assume Nintendo too would at some point consider GaaS.
 

Woopah

Member
Makes sense and clearly it works for them.

I'm interested in their views on GaaS, as it's quite an interesting topic rn when it comes to MS and Sony. I assume Nintendo too would at some point consider GaaS.
They do have things which could be described as "GAAS-lite" like Splatoon 3 and Smash Ultimate, but they haven't shown any interest in going full GAAS yet.
 

Jubenhimer

Member
Also, it seems that Nintendo is also slowly struggling with major sp-releases, or did I read that incorrectly?
It's actually more that Furukawa wants to avoid a Wii U/3DS situation going into Switch 2. Last gen, Nintendo made the mistake of assuming they could get by with their Wii/DS era tools and resources, when HD development required a very different approach, including more staff and new development toolchains.

So Nintendo's recent strategy of focusing on expanding internal offices and making small, but strategic acquisitions like Next Level Games, Nintendo Pictures, and SRD is a way to prepare themselves for the next generation, where AAA releases will require more resources. It's also a way to keep up a steady stream of releases.
 
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