The president of the Big N is clear that the company will invest its monetary reserves if necessary.
This week we met the financial results of the last fiscal year of Nintendo, which has made a profit of record for the Big N, which has already sold more than 84 million of Nintendo Switch worldwide. In that report, Nintendo has detailed that it has around 9.2 billion dollars in reserves. Now, the president has commented more on how they will put that money.
At a press conference (via Nikkei and VGC ), Shuntaro Furukawa, president of Nintendo, explained that this money is intended in principle to maintain the financial stability of the company, but that they will use it if they have to invest in technological innovation. The company would use a portion of those savings to stay current, as technology is advancing rapidly.
“We need to secure cash reserves to ensure financial stability, but if we need to respond to rapidly advancing technological innovation we can acquire companies that own the technology, ” Furukawa said. It must be remembered that the president already stated a few months ago that Nintendo will not acquire studies blindly and will carefully think about the movements it makes.
Still, Nintendo is not resting on its laurels and in 2020 made a record investment in research and development, allocating 880 million to R&D. We will see what the future movements of the Big N are and if it acquires other studios or companies, but at the moment there is no news. What we do know is Nintendo’s concern with the semiconductor shortage, which is affecting Switch production.