Nintendo will invest in a new research and development facility in its home-city of Kyoto, according to a report in Japanese newspaper Nikkei.

The cost of consttruction has changed since Nikkei first reported Nintendo's plans in 2009, rising from £92 million to £127.5 million.

The 40,582 square-metre lot is located in Kyoto's Minami Ward, and the building will house 1,500 people over eight floors, standing 41 metres at its highest point.

Nintendo's main office is also located in Minami Ward, but its existing research and development facility - known as Kyoto Research Centre - is further away, in Higashiyama Ward. The new building will allow all of the company's research to take place in one building, improving communication and efficiency.

Construction of the facility will start in January 2012, and is scheduled to be completed by the end of calendar year 2013.

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