Nintendo significantly increased spending on research and development after the launch of Switch 2

Nintendo significantly increased its research and development spending in the fiscal year ending March 2026. According to the latest financial report, R&D investments rose to 177.8 billion yen compared to 143.7 billion yen a year earlier – a 23.7% year-on-year increase.

The company noted that the increase in research and development costs was one of the key reasons for the growth in overall commercial and administrative expenses. Nintendo's selling, general, and administrative expenses increased by 28.3% during the year, reaching 548.8 billion yen. The report states that this was influenced by both large-scale advertising campaigns related to the launch of Nintendo Switch 2 and increased investments in research and development.

Nintendo indicates that the increase in costs is related to several development areas for Switch 2. The company is simultaneously investing in engineering solutions for the console, the development of its own games, technology, online infrastructure, and future projects beyond the platform's launch lineup.