Nintendo is facing increased development costs as games become larger and more intensive for the upcoming Switch 2 era.
Nintendo's president acknowledges the rising costs in game development but mentions plans to maintain their traditional approach by making necessary investments for more efficient development.
Nintendo is exploring ways to create games with shorter development periods while still offering innovation as a potential solution to combat rising development costs and software prices.
The gaming industry is experiencing increased challenges due to higher development costs, leading to layoffs and game cancellations for some competitors, whereas Nintendo aims to navigate this by focusing on smaller games alongside ambitious projects.