Nintendo's developers and partner studios are facing "big limitations" amid the coronavirus pandemic.
The gaming giant has admitted that having so many of its employees based at home during the health crisis is set to have a "large impact" on its business.
Nintendo president Shuntaro Furukawa said: "Since there are indeed big limitations on what can be done from home, we do think this will have a large impact.
"Nintendo has development partners and development offices not just in Japan, but all over the world. The first locations to be affected were the offices in Europe and America, where working from home started early. Then our offices in Japan also switched to working from home.
"In the case of Japan, this had a major impact on development because we did not already have a remote development environment in place."
According to Furukawa, Nintendo's teams are "gradually gaining experience" in terms of the best ways to work remotely.
However, he also warned that the impact of the pandemic on game development "may potentially increase" in the future.