Between 2022 and the beginning of 2023, layoffs in the technological giants were on the rise. Microsoft, Google, Amazon… There are several companies that had to cut staff to alleviate the crisis. But it is not the case Nintendo.
This week it was learned that the video game company increased the salary of its workers in Japan by 10%.
There is only joy in Mario’s house, At least when it comes to salary.
And everything occurs in an environment where there was a drop in sales and profits, according to the report for the last quarter. However, the reason that Nintendo uses for the decision is “ensure long-term growth to secure our workforce,” in the words of its president, Shuntaro Furukawa.
Reuters points out that Nintendo, like other Japanese companies, follow the call of Prime Minister Fumio Kishida to increase wages to combat inflation.
In addition, higher salaries help attract talent, since “falling birth rate and low immigration leave Japan with severe labor shortages,” according to Reuters.
Nintendo foresees difficulties in software sales
Nintendo’s most recent sales figures have not been the best, or at least as expected. Its annual software sales forecast dropped from 210 million units to 205 million, while Switch’s sales target went from 19 million to 18 million.
nintendolife indicates that “the revised forecast and lower earnings are linked to inflation within the local economy, as well as fluctuations in the currency markets.”
But the company has experienced strong growth in the sale of digital games, approximately 21.5% year-on-year, and in those of Switch, the latter close to a billion in software.