1. Nintendo’s R&D costs surged by 23.7% in FY 2026, indicating significant investment possibly related to developing the Switch 2 and its variants.
2. There are strong rumors and leaks suggesting the upcoming release of a Switch 2 OLED or Lite version, aligned with Nintendo’s historical hardware refresh patterns.
3. Market conditions, including lagging sales and regulatory changes, may influence Nintendo to release more affordable or revised console models more quickly.
Recent Financial Insights and R&D Costs
Nintendo’s 2026 fiscal report revealed a substantial increase in their research and development expenditure, reaching 177.8 billion yen. This is a sharp rise of 23.7% compared to the 144.6 billion yen spent in FY 2025. This trend highlights Nintendo’s ongoing commitment to innovation, especially with the significant investment seen lately. Many gamers believe this might be linked to upcoming console projects, including a possible Switch 2 OLED or Lite version.
Historical Trends and Console Releases
Looking back, the company’s expenses have steadily increased from around 69.6 billion yen in 2019 to 84.1 billion yen in 2020, coinciding with the launch of the Switch Lite in September 2019 and the OLED model in October 2021. These years marked notable upgrades, but in the absence of new consoles, shifts in R&D costs have been relatively minimal. Nintendo’s innovative pursuits, supported by numerous patents, suggest that new hardware variations always seem to be on the horizon, requiring hefty investments to develop new versions of existing handhelds or consoles.
Speculations and Future Hardware Leaks
In early 2026, data mined from the Nintendo Account portal revealed an “OSM” reference, sparking rumors about an upcoming Switch 2 or a possible upgraded Lite or Pro model. Additionally, a March report from Bloomberg pointed out declining console sales, hinting that Nintendo might accelerate revisions or introduce more affordable options to boost sales. Fans and analysts are speculating about a new console possibly priced around $350, as suggested by popular Nintendo commentators. Meanwhile, some implications point to a response to EU repair laws, with Nintendo recently modifying their handhelds to facilitate easier battery replacements, though whether this would significantly increase R&D expenses remains uncertain.











