Nintendo certainly believed in the Switch, otherwise it would not have been developed. But people also believed in Wii U. The Switch isn’t just successful, it’s incredibly successful. And they had not expected this enormous success.
As Nintendo explains in its annual report, its basic financial policy has always been to secure liquidity to continue creating products, services and surprises. “Nothing has changed in this fundamental policy”, is it[called[genaamd.
“But the Nintendo Switch business has exceeded our expectations, which has given us a strong liquidity position in recent years and a good opportunity to rethink how we can use our money most effectively and strategically.”
The unplanned money must now be invested in activities, in addition to the research and development and capital expenditure already planned. In addition, they want to invest more than 760 million euros in the software department.
About 380 million euros goes to ‘non-game entertainment’, ie entertainment apart from video games. Specifically, films are mentioned here, but also merchandise and theme parks. In addition to the previously announced Super Mario film, a film about Donkey Kong is also planned, according to media reports.
They would like to invest significantly more in everything to do with customer relations. Here, 2.3 billion euros is set. This is all about the Nintendo Account. You want to drive the move to digital and build a unique service infrastructure. This also includes improvements to the My Nintendo Store and more options in the Nintendo eShop.
In addition to these online activities, the expansion of “direct contact points” with customers is also being considered. This also applies to local brick and mortar stores such as the Nintendo Tokyo Store.
Investors who are naturally interested in investing are also given the prospect of M&A activity. This stands for mergers and acquisitions, or corporate takeovers. Given the current activity of the competition, this is certainly something that concerns investors. But there is no concrete information.
Pictures: Super Mario Odyssey, Nintendo
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