Forums - Nintendo Discussion - Nintendo spend $527M in R&D in the FY'15 according to Technavio

zorg1000 said:

idk why this is interesting news then, its less than the last 3 years.

Notice how the year before new platform released was when it was lowest.



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R&D always costs a lot of money... hope it pays off then



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ZhugeEX said:
jason1637 said:

Oh i didn't know that.

Where can we find this information?

It's all in Nintendo annual report. 

https://www.nintendo.co.jp/ir/en/library/annual/

 

Here is a break down for you guys if you're interested-

 

This is how much Nintendo have spent on Research & Development:
FY2015: $527m
FY2014: $696m
FY2013: $567m
FY2012: $642m
FY2011: $363m


This is how much Nintendo have spent on Advertising:

FY2015: $456m

FY2014: $682m

FY2013: $650m

FY2012: $909m

FY2011: $1,160m

So they often spend more money advertising than they do developing?  



ZhugeEX said:
jason1637 said:

Oh i didn't know that.

Where can we find this information?

It's all in Nintendo annual report. 

https://www.nintendo.co.jp/ir/en/library/annual/

 

Here is a break down for you guys if you're interested-

 

This is how much Nintendo have spent on Research & Development:
FY2015: $527m
FY2014: $696m
FY2013: $567m
FY2012: $642m
FY2011: $363m


This is how much Nintendo have spent on Advertising:

FY2015: $456m

FY2014: $682m

FY2013: $650m

FY2012: $909m

FY2011: $1,160m

So, in line with other years because the development is not only in one year.



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Meanwhile PlayStation spends billions.
Just the APU was over 3 billion to develop.
If the numbers are true for Nintendo then I wouldn't expect the NX to be radically different than their previous console attempts. Sony spent over 6 billion on the PS4 project so half a billion is really a drop in the bucket.
So as I predicted before the NX is only going to be a moderate upgrade over the Wii U just like the Wii U - Wii upgrade before it.



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OneKartVita said:
ZhugeEX said:

It's all in Nintendo annual report. 

https://www.nintendo.co.jp/ir/en/library/annual/

 

Here is a break down for you guys if you're interested-

 

This is how much Nintendo have spent on Research & Development:
FY2015: $527m
FY2014: $696m
FY2013: $567m
FY2012: $642m
FY2011: $363m


This is how much Nintendo have spent on Advertising:

FY2015: $456m

FY2014: $682m

FY2013: $650m

FY2012: $909m

FY2011: $1,160m

So they often spend more money advertising than they do developing?  

Even more Nintendo includes all development in their R&D budgets.

So this is console R&D + handheld R&D + Misc hardware R&D (QoL) + Software Tools/API Development + Games development

 

Sony & MS separate hardware/software costs.



elektranine said:
Meanwhile PlayStation spends billions.
Just the APU was over 3 billion to develop.
If the numbers are true for Nintendo then I wouldn't expect the NX to be radically different than their previous console attempts. Sony spent over 6 billion on the PS4 project so half a billion is really a drop in the bucket.
So as I predicted before the NX is only going to be a moderate upgrade over the Wii U just like the Wii U - Wii upgrade before it.

How much a company spends on a console doesnt really determine how successful it will be.

Look at the wii.

Also we don't know how much the spent on the NX. We only know that 627m was spent on r&d in 2015.



jason1637 said:
elektranine said:
Meanwhile PlayStation spends billions.
Just the APU was over 3 billion to develop.
If the numbers are true for Nintendo then I wouldn't expect the NX to be radically different than their previous console attempts. Sony spent over 6 billion on the PS4 project so half a billion is really a drop in the bucket.
So as I predicted before the NX is only going to be a moderate upgrade over the Wii U just like the Wii U - Wii upgrade before it.

How much a company spends on a console doesnt really determine how successful it will be.

Look at the wii.

Also we don't know how much the spent on the NX. We only know that 627m was spent on r&d in 2015.

And just spending billions does not make things better for Nintendo. They would have a greater chance of going under if they are not able to even stay even on profits, especially since video games IS their sole core business right now (at least Sony has multiple divisions such as movies, phones, games, etc.). 



Do note that the numbers are above are tied to fiscal years.

So Fiscal year 2015 is actually the period from April 1st 2014 to March 31st 2015
And Fiscal Year 2014 is the period from April 1st 2013 to March 31st 2014.

FY2016 results are not yet out. That covers the period from April 1st 2015 to March 31st 2016. That will be interesting to see next month.



jason1637 said:
elektranine said:
Meanwhile PlayStation spends billions.
Just the APU was over 3 billion to develop.
If the numbers are true for Nintendo then I wouldn't expect the NX to be radically different than their previous console attempts. Sony spent over 6 billion on the PS4 project so half a billion is really a drop in the bucket.
So as I predicted before the NX is only going to be a moderate upgrade over the Wii U just like the Wii U - Wii upgrade before it.

How much a company spends on a console doesnt really determine how successful it will be.

Look at the wii.

Also we don't know how much the spent on the NX. We only know that 627m was spent on r&d in 2015.

Yes let's look at the Wii, let's look at the Wii:

The was released and sold well for a period of time and then didn't sell nearly as well. There was a mass hysteria surrounding the Wii propelled by the media, such as CNN, Fox, ABC, NBC, etc, promoting it as a "must have" device. Basically it was cool to own one. Many non-gamers bought this device just because their friends had ones. Nintendo reported alarming statistics such as less than 40% of Wiis were ever connected to the internet and very low software attach rates.

This obviously didn't happen with the Wii U and almost certainly won't happen with the NX either. Besides I don't think anybody wants another Wii with its low attach rates it failed to attract much hardcore games from developers and what was on there were poorly designed motion controls ala 3rd party shovelware.

 

Besides the main premise of this thread is to discuss the R&D costs of the NX. Many say the NX is supposed to be more powerful than the PS4 but with such low R&D Costa it likely will not. See my above post on how people are overstating Nintendo's true console R&D costs.