Nintendo has just made a massive purchase, spending $40 million to buy the land adjacent to its current headquarters. It can be said that the company will be investing more into research and development.
Nintendo Buys Land Adjacent Kyoto Headquarters for $40 Million
According to the story by Games.Mxdwn, another massive acquisition has just happened. While Microsoft and Sony usually make headlines due to their acquisitions like the acquisition of Blizzard and other investments, Nintendo is taking a big move to expand its office.
Nintendo officially announced that they have been able to purchase the lot adjacent to the company's Kyoto main headquarters. The purchase of the land cost the company around 5 million Yen or about $40 million USD.
Company Plans to Build 12 Floor Research and Development Building
The new land is going to be the location of a new building that will be focused mostly on research and development. Nintendo's research and development building will be directed towards titles and projects both new and old.
According to Nintendo, the building will not be finished until 2027 and will be a 12 floor property called Corporate Headquarters Development Centre Building No 2. The company has also expressed how important R&D is to them and their plans to invest more into that sector.
Nintendo to Expand Its Offices
Per Nintendo, they will "carry an important role in reinforcing its R&D" with the help of the new building. The initial plan of Nintendo was to basically place the new building in the center of their development center located in parallel to their main headquarters.
Instead of doing this, Nintendo plans to build in its newly purchased land in order to make a new corporate office. With the new office, the company plans to bridge it together with the existing headquarters.
Company Sets Aside $900 Million to Fund Development Expansion
According to Games.Mxdwn, the acquisition became possible due to the success of Nintendo retaining the spot "near number 1 seller" every month since 2017. The company also announced that they would be budgeting $900 million to fund development expansion.
The budget for the $40 million land wherein the R&D building is set to be built would most likely come from this fund.
No Estimate on How Much Building Will Cost
With the recent launch of the Steam Deck and Nintendo's Switch being its main console, the latter is no longer the only handheld-device in the space. A bigger budget for R&D could result in potential improvements to its hardware or the addition of more games to its handheld device.
As of press time, there is still no word regarding how much the actual building will cost the company but the price of the land alone has already resulted in the company spending a significant $40 million.
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This article is owned by Tech Times
Written by Urian B.
