![]() This crisis, colliding with the computer chip shortage we have been suffering through in recent years, has meant that costs have risen sharply in technology based markets. Markets are obviously unstable at the moment with the cost of energy rising globally. While development costs are stable this year, production costs are slowly beginning to rise. ![]() This is almost 8,000x the average and more than twice the spending of the next highest year, 2019. However, this cost has risen substantially since 2018, with 2022’s costs estimated at ¥66 billion ($500 million). ![]() For reference the cost of materials was stable from 2015 – 2017 at around ¥2 billion ($15 million) every year. This cost usually increases preceding the development of new hardware. What is also interesting about Nintendo’s spending is the increase in costs for ‘Raw materials and supplies’. ![]() In fact, hardware development costs were at an all time high for the company in 2021, costing ¥3.7 billion (approximately $27 million) compared to 2020’s ¥19 million (a mere $140,000). Costs for hardware development skyrocketed in 20 the years that the Switch Lite and Switch OLED released respectively. Nintendo’s spending trends since 2015 can tell the story of when the company is developing new products. Nintendo recently released figures for its production costs over the past three years, and spending on hardware parts and development have risen dramatically. ![]()
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