"In an effort to create more innovative and attractive products, Nintendo Co. will combine the development segments for its home video game consoles and handheld game devices," a translation of the report reads.
The move will see 130 employees from Nintendo's console development team joining 150 employees from its handheld division to a single development department established February 16. A new development building is due for completion at the end of the year, next to Nintendo's current headquarters in Kyoto.
"The two teams will eventually be integrated and the segment will be organized by function, such as circuits, mechanisms and design," quotes the report.
"Game system development projects are becoming larger and taking longer to complete as the machines become more advanced. Nintendo apparently has its sights set on speeding up these projects by sharing development processes for consoles and handheld devices where possible and by reassigning personnel depending on the situation. It sees interactions between engineers as a potential hotbed of new ideas."
Nintendo is hoping the move will encourage further connectivity between console and portable devices, including the implementation of handheld devices as console controllers, and game data sharing so players can continue playing their console game on their handheld when away from the couch.
"Such functions are already available with the Wii U, but Nintendo likely hopes to better streamline its products by tapping into such online services as Twitter and video sites."
We've reached out to Nintendo for comment and will update this story when we hear back.