Nintendo opening new $141M R&D facility

Kyoto-based Wii maker plans to consolidate product-development efforts in 40,000 square-foot campus near current headquarters.

As part of its nine-month earnings report in January, Nintendo severely disappointed investors by revising its full-year earnings downward 9 percent and cutting its profit projections by an onerous 36 percent. The thing is, even despite the hit, Nintendo still expects to pull in a record-setting gob of cash for the year, to the tune of ¥230 billion ($2.54 billion) on revenues of ¥1.82 trillion ($20.1 billion).

Sufficiently flush with money, the Kyoto, Japan-based game maker has revealed plans to build a new research-and-development office near its current headquarters. As reported by Japanese financial news service Nikkei Net, the facility will be constructed in close proximity to the company's current headquarters on a 40,000 square-meter lot that Nintendo purchased for ¥12.8 billion ($141.6 million) in December.

After a poor showing from the GameCube, Nintendo's R&D department turned the tide during the current hardware generation, thanks to the innovative input methods of the Wii and DS. Through December, Nintendo's console had sold 44.96 million units globally since launching in late 2006, whereas the DS had sold 96.22 million units during the course of its three iterations since the original system launched in 2004.

Nintendo representatives informed Nikkei that the new facility will be devoted to creating new game consoles as well as software for the Wii and DS. Previously, Nintendo's R&D department operated out of two different facilities, and the new setup is intended to help the teams more effectively collaborate, a Nintendo representative said. Nikkei notes that Nintendo has not yet determined when it plans to integrate the two facilities.

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Discussion

174 comments
alex6792
alex6792

WOOOO!!maybe the wii2,Nintendo US,wiiwii,whatever its called will be ALOT better in terms of online and technical graphics.......so wii wont be left out anymore >=]

ControllerLord
ControllerLord

Thank god. All I've been wanting is more people to make those mass market games, so that the Nintendo's veteran game makers can work on the real games.

RPG_Fan_I_Am
RPG_Fan_I_Am

to diggyman, I honestly don't believe that. Nintendo could have built up the graphics on the Wii if they really wanted, granted I will agree they didn't have much money, they could have done it. The thing is bigger graphics requires a better cooling system and more hard drive space and yada yada yada and next thing you would know the wii would be a ps3, and cost as much, and look at how its doing... Nintendo wanted to do exactly what it is doing, and that's make the system easily accessible to elderly and children. and elderly and children don't play graphics. they just want simplicity. graphics and a huge cost does not equal simplicity to elderly and children who's parents are buying the system.

diggyman
diggyman

I agree with 7blades7, however, I am very excited about what the Wii did for Nintendo. It gave them the money to create this 40,000 sqft. building, and I'm sure it's going to make a huge difference for the company going forward. To me, the biggest problem with Nintendo is how they cut corners on their system hardware, and then give the "graphics aren't everything" speach. Although I believe that to be true, there's no way in h*** any company who has the money to optimize their current flagship system, is going to give it "below-current-standard" graphics power just to prove a point. Honestly, I think they just didn't have the money back then. They had to make a choice between better "chips" to improve graphics, or outside-the-box innovation. Of course, the latter was chosen, but now, they have the money to possibly do both very well. This building is a huge step in the right direction, if you ask me. Now, I'm getting really excited about all these Wii HD rumors.

jjr10
jjr10

That's such a big area ...

necronaux
necronaux

Hopefully their new R&D will stop them from releasing crappy anything-that-comes-along titles.

MassacreMonk
MassacreMonk

Nintendo should just go back to making playing cards.

gameking5000
gameking5000

@Link Destined 1 It does develop quite a few games too as well as publish. I think Wii fit, Wii play, Wii sports and Wii Music are developed by Nintendo. I hope this means faster production.

hikayu16
hikayu16

nvm about the nds comment down below . i misunderstood the original statement .

hikayu16
hikayu16

nintendo ds never has a game a game that worth playing over real console . i have no idea why people just keep buying the wii when there are less than 5 games worth wait for 4 the whole year ! madworld , the conduit ... what else ? so i'll have to dust off the wii some 3 months everytime ? come on nintendo , put some money into making game too . stop milking the already rich cow .

Link_Destined_1
Link_Destined_1

Nintendo doesn't make shovelware...it just publishes it. There has been a drought of really good/big name games for the Wii as of late. But it looks like the PS3 and 360 are having a similar drought. Only the DS seems to have a wealth of good games on the way.

Flipyap28
Flipyap28

I hope this means we will get a really good new handheld, The DS amazes me with its games like Final Fantasy IV and The World Ends With You. As for the wii, I dont want to sound like a fan boy but, the console doesn't seem to have any game which makes the Wii worth getting for a hardcore gamer. Sure Wii can appeal to everyone but is their really anything which looks...epic enough, I just hope Nintendo's next console has some really good titles and I hope this big change to Nintendo can deliver something....amazing

lanmanna
lanmanna

When does Nintendo make "shovelware"? >_> They ARE not making as many games that appeal to us though as much.

wiifan001
wiifan001

@goku8565 Nintendo never made any shovelware.

goku8565
goku8565

agreed, hopefully they end the "shovel-ware" and put some hits back on the charts again like in the old days. Don't get me wrong, there are some great games for the wii, but Nintendo has become is high and dry when it comes to the number of those great games. We need more quality games, and less junk ware. I don't want to lose my faith in Nintendo.

bishopphoto
bishopphoto

i kind of agree with 7blades7 the wii has sat mostly dormant since i got the 360. i mainly play wii sports when people come over and have definitely played ZERO single player since november (when i got the 360). astute observation. i wonder what wii game will come out that will get me back into it, as 360 has many solid gold titles that i dont have time to get into all of them that i want

joesh89
joesh89

"7BLADES7" says it best

7BLADES7
7BLADES7

I hope this means that nintendos next gen console is a huge improvement, I have been a serious nintendo fanboy since the nes days but I really dont like the wii, theres been a few good games but thats not enough for me, I now own a 360 and havent touched my wii for about 4 months, for me the games are much better, and no im not just talking about graphics, Im talking about gameplay, for me the 360 is a far superior system! Ive never felt this way about nintendo in all these years, but I really feel theyve lost something :(

martyhavok
martyhavok

Is anyone else getting tired of seeing really poorly written articles on GS? I know I am.

puppiemaster
puppiemaster

enoslives7 Posted Feb 11, 2009 5:32 pm GMT The reason nintendo has seen its earnings decline is that people have realized the wii is a gimmick, and has no lasting appeal. -------------------------------------------------------------------------------------- I think you need to read more than the Headline. For a Gimmick it is really kicking the other consoles into touch, that makes it a must have item, not a gimmick, gimmicks dont last more than a year and the Wii is selling more now than it did 2 years ago. People should get over themselves, so you don't like the Wii, that's great, but millions do, 360 fanboys hate the PS3 and the Wii, PS3 fanboys hate the 360 and the Wii, Wii fanboys hate the PS3 and the 360. Personally I just hate Fanboys, they are just people with narrow minds and limited education.

Krusnikzero2
Krusnikzero2

It's good to see that in these hard economic times some companies still have their sights set on the future of the industry.

wiiplay1
wiiplay1

If only Nintendo were American and was in the DOW, I could buy every Nintendo game known to man. Oh well, I guess. Time to take on Tokyo.

ShuichiChamp24
ShuichiChamp24

Sweet, will be interesting to see what Nintendo comes up with.

jomofle
jomofle

I´m living in Kyoto and the idea of seeing them build the thing there seems fun :-)

Micropanic
Micropanic

And here I was expecting some kind of wacky theme park instead.

Extra_Life
Extra_Life

Can't wait to see what they cook up next.

StreetRacer91
StreetRacer91

After getting the Wii I probably won't get the next Nintendo console so it doesn't even matter.

ecs33
ecs33

@LancerVI: Yup. But the Democrats in general are not as radical as Obama, so Obama's talk of "equal distribution of wealth" (which people seemed to miss prior to the elections thanks to our unbelievably biased media), probably will not go well with Congress. Nevertheless, it is our responsibility to keep a vigilant eye on the government regardless of who is elected. And @ Bassist 4life: What up bro? I'm a bassist 4 life too! Kick ass to see like kind on this website.

Bassist_4Life
Bassist_4Life

I hope that their next console will be a true gaming console that won't feel like it was developed with casual gamers in mind, first and foremost. The amount of bulls*** software on the Wii is sickening. At least the virtual console rocks.

Sweendrix
Sweendrix

Finally! Maybe Nintendo will now research how to make their fad system fun to people who actually buy and play games.

ecs33
ecs33

@Phase4illini:L THANK YOU. Couldn't have said it better myself. I personally don't like either political party. But the Obama administrations claim that "republican ideologies have been discredited due to this economic downturn" are outrageous. Actions by the libs were a major reason why this whole thing started in the first place. Like you said, legislation passed that prompted banks to give loans to lower income people who did not qualify for a home loan, and a good number of these people defaulted. Ofcourse my generation of cattle who can't think for themselves buy into this B.S. They let any figure head of any political party think for them rather than come up with their own conclusions. It's pathetic and sad. I'm worried about my future because i'm going to have to ride the wave of stupidity.

Amir29
Amir29

Though the numbers speak differently, the Wii was a very disappointing system for me. Integrating the R & D department is a great idea. Considering the success of the Wii, now is a better time then ever to invest in their future. I'm just hoping the next console is not another peripheral gimick to attract casual gamers. I would much prefer a system that's graphically competitive with a lot more than just "Cute" games to play.

CasinoOutlaw247
CasinoOutlaw247

Nintendo has been around forever. They are still in business for a reason: QUALITY. Check the lineups: Nintendo 8-Bit, Super Nintendo, N64 (could have used more games) Gamecube, and of course the Wii. Let's not forget the awesome handhelds (Gameboy, Gameboy Advance, and the Nintendo DS) CONCLUSION: I am not suprised about Nintendo's financial success. Good Job!!

phase4illini
phase4illini

maxsteel86, as a former officer in the US Navy (and a relatively educated man), I can attest to huge gains in stability throughout Iraq. Did I say it was perfect? No. But considering the fact that insurgent attacks, and both troop and civilian casualties are at an all-time low, and continue to decline as the Iraqi people further exert their own will, I'd say that the country is on its way to safety, stability, and, with all hope, prosperity. You talk about the current economic situation as if it were all the business sector's fault. While its true some level of greed has spurned the economic downturn, it is ignorant to sit on the simple fact that the US government, under the Clinton administration, REQUIRED banks to issue vast amounts of sub-prime loans, the very loans that have undercut the entire global credit system with resounding effects throughout the global economy. Banks that did not submit to such lending practices where subject to severe penalties. We have a vast way to go before the economy is as bad as it was in the great depression, where unemployment levels breached 30% and the majority of all stocks carried little value. It can even be argued that FDR's New Deal would not have met with success had it not been for the capitalist growth of the industrial sector caused by WWII. All of that aside, claiming that the economy is utterly doomed is just as bad as the fear-mongering that was cited throughout the Bush presidency, and has no doubt been the sole cause of a bill amounting to almost a trillion dollars in spending being rushed through the Congressional process. Back on the topic of Wii games... MadWorld looks like it's going to be a solid title. :)

rockstar_88
rockstar_88

@ enoslives7 The declining economy surely couldn't be the reason!

hatieshorrer
hatieshorrer

@enoslives7 What a FANBOY comment. The Nintendo Wii is being produced faster now then in 2008, 2007 or, 2006 and still saling out. The reason for Nintendo's revising its years earnings was because someone at Nintendo Miss calculated the ratio of US dollars to yen. Instead of calculating 115 yen to 1 US dollar they calculated 100 yen to 1 US dollar.

enoslives7
enoslives7

The reason nintendo has seen its earnings decline is that people have realized the wii is a gimmick, and has no lasting appeal.

Da_Skull_King
Da_Skull_King

[This message was deleted at the request of a moderator or administrator]

castlevania1
castlevania1

Stick to the article, this is a videogame web, not a "financial report crisis" type of web.

ezikiell
ezikiell

While Microsoft and Sony lay off employees and close businesses in order to cut their losses, Nintendo does neither and is planning to build a new R&D facility in Kyoto. It seems that the profits it received from the DS and Wii may mean bigger things on the way for Nintendo.

ecs33
ecs33

@Lisandro v22: That's a valid point. But I think Nintendo is smart enough not to produce new hardware that isn't flexible. They would make it so that different game types would be compatible. They would also probably ensure that the hardware can be put to use in other ways to increase their market. That's what smart, successful companies do, and who is questioning Nintendo's ability in that respect? Look at the Wii and the many different kinds of games they were able to sync with their concept. If the idea would lead to homogenization, then i am confident that Nintendo would scrap it.

Lisandro_v22
Lisandro_v22

it seems that this will lead to a total homogenization of their games

chikinstien
chikinstien

Um, hey maxsteel... First off, compared to a country that pays everyone the same minimum wage, Americas current financial situation is, as I said, a speed bump. We have over come much worse situations in the past, and will probably be faced with many more in the future. That's all a part of the real world. Something you would know about if you wouldn't spend all day telling random people on the interwebz that they live with their parents, even if said interwebz personality actually lives all alone in a nice crowded barrack/dormitory. Yeah, that was meant to be poetic. Deal.

ecs33
ecs33

LOL @ people who think China is "up and coming." give me a break. They purposely lower the value of their currency to attract US investors. The fact still remains....CHINA DEPENDS ON THE US for their economic gain and so does the rest of the world. China's actions are good for only the short term. Take some economic classes. I have taken many...studied many models many theories and everyone on this board is talking stupid rhetorical nonsense of whatever party they are affiliated with. Study the models, the cause and effect relationships, and you will see how unstable China really is. One act can really send their economy into a tail spin. People are completely over exaggerating this recession. We've been there, done that, and got out of it. People are talking doom and gloom and we aren't even close to a depression yet. Give me a break people. Go to class and learn something before you mindlessly talk political rhetoric.

ecs33
ecs33

@maxsteel86: Dude you are talking like you have short term memory. We have been in similar recessions before and been in a depression which makes this look like paradise. I wonder what got us out of these recessions/depressions? Oh yea...capitalism...hmmmm And look at the economies of countries who try to greatly regulate their economy. The bottom line is if we go down the rest of the world goes down with us. China's threats of unloading T-bills will only kill their economy. Who is going to buy their cheap plastic goods once we go?

namdar
namdar

YAY NINTENDO! Maybe I'll finally be able to play something better than the SNES :-D Just kiddin I wish them well!

ecs33
ecs33

Nintendo is being smart. They could very well top the next gen if this R&D pays off. R&D is always risky but the potential of the unknown could always produce high profit.

maxsteel86
maxsteel86

Phase4illini what the heck are you talking about? Iraq has NOT been stabilised. Just cos its not on the headlines every day doesn't mean the problem has gone away. Geez... stick to talking games, you folks haven't got a clue about the world, thats clear.

elbert_b_23
elbert_b_23

here to the future of nintendo i hope this new R&D facility does well for them

maxsteel86
maxsteel86

chikinstien, do you pay attention to current financial conditions or is that something that only affects your parents? Look at what capitalism has brought in, economic ruin that's set to make the 1930s look like 2001. Before touting your capitalist gains maybe you should look into it. Its being reigned in by the new US admin cos everyone saw what happens when you just let it go on unconditionally. Ok? Go ask mum and dad if the repo men are coming to evict you yet