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Nintendo has reported their earnings for the quarter ending March 31, 2021, and surprise surprise, the house that Mario built is doing very well for itself. Fiscal year 2021 saw Nintendo bring in $16.6 billion in revenue and $6 billion in net income, a record for the company. During the past quarter, the company shipped another 4.73 mission Switch units, bringing the total number shipped to 84.6 million. Not bad!

With records amounts of cash flowing in, Nintendo is investing more heavily in Research & Development than ever before, spending $880 million during the past fiscal year. Obviously, a large portion of this is going to software development, but during an investor’s call, Nintendo also said they’re investing in both online infrastructure and their next platform, which will be another traditional system that integrates both hardware and software (thanks to Astris Advisory analyst David Gibson for the reporting).

Q: In what areas is the increased R&D being spent?

A: We are still mid way through Switch cycle, so software plus outsourcing costs are increasing for switch which is the main factor. Also cost per title is increasing and need a certain level of scale.

— David Gibson (@gibbogame) May 6, 2021

A: Investing in online as well. Although mid way through Switch cycle it is necessary to invest in the next platform, where hardware and software integrated will continue.

— David Gibson (@gibbogame) May 6, 2021

Of course, hardware is only part of the puzzle, with Switch moving 231 million software units during FY 2021. Here’s the updated list of Nintendo’s best selling Switch games (the first number is FY 2021 sales, the one is bracket is total lifetimes sales):

Animal Crossing: New Horizons – 20.85m (32.63m)Mario Kart 8: Deluxe – 10.62m (35.39m)Super Mario 3D All-Stars – 9.01mRing Fit Adventure – 7.38m (10.11m)Super Mario 3D World + Bowser’s Fury – 5.59mSuper Smash Bros. Ultimate – 5.01m (23.84m)Legend of Zelda: Breath of the Wild – 4.86m (22.28m)Super Mario Party – 4.69m (14.79m)New Super Mario Bros. U Deluxe – 3.84m (10.44m)Pokémon Sword & Shield – 3.73m (21.1m)Super Mario Odyssey – 3.42m (20.83m)Luigi’s Mansion 3 – 3.26m (9.59m)Clubhouse Games – 3.14mPaper Mario: The Origami King – 3.12mHyrule Warriors: Age of Calamity – 3.07mSplatoon 2 – 2.07m (12.21m)Pikmin 3 Deluxe – 2.04mSuper Mario Maker 2 – 1.67m (7.15m)Xenoblade Chronicles DE – 1.52mPokémon Let’s Go – 1.31m (13.28m)

Can anything slow down Nintendo’s current momentum? With a rumored "Switch Pro" revision and big games like Zelda: Breath of the Wild 2 on the way, probably not.