Nintendo has announced a 10% increase in base salaries for employees in Japan, a move the company says is intended to secure its workforce for the long term while it adjusts fiscal forecasts amid a challenging economic environment.
The update, reported by Reuters on February 8, 2023, was disclosed during Nintendo’s earnings briefing for the third quarter.
Background and context
Nintendo Co., best known for the Nintendo Switch platform and franchises such as Mario and Zelda, launched the Switch on March 3, 2017.
Since then the hybrid console has become one of Nintendo’s strongest-performing platforms, with lifetime hardware sales well above 100 million units.
The company’s February briefing also addressed shifts in near-term business expectations tied to domestic inflation and foreign exchange fluctuations.
Revised fiscal forecasts
In its briefing, Nintendo revised its annual software sales forecast from 210 million units to 205 million units and lowered its Switch hardware sales target for the next fiscal period from 19 million units to 18 million units.
Nintendo has attributed these revisions to inflationary pressure in Japan and volatile currency markets.
The company has previously stated it does not currently plan to raise prices on software or consoles, while leaving open the possibility of future price adjustments should market conditions change.
On employee compensation and broader economic pressure
Japanese Prime Minister Fumio Kishida had urged companies to raise wages to help workers manage inflation, and Nintendo’s announcement aligns with that national push.
At the earnings briefing, President Shuntaro Furukawa emphasized the strategic nature of the decision, saying in journalistic terms that securing and retaining a stable workforce is essential for the company’s long-term growth.
Digital sales and platform health
Nintendo also reported continued strength in digital game sales during the period, reflecting industry-wide shifts toward downloadable content and eShop transactions.
While Nintendo remains cautious about short-term revenue and hardware forecasts, the company’s investment in employee compensation and digital offerings highlights an effort to balance immediate economic headwinds with longer-term business stability.
This report summarizes verified, company-announced actions and figures disclosed during Nintendo’s February 2023 earnings briefing and related media coverage.
The update, reported by Reuters on February 8, 2023, was disclosed during Nintendo’s earnings briefing for the third quarter.
Background and context
Nintendo Co., best known for the Nintendo Switch platform and franchises such as Mario and Zelda, launched the Switch on March 3, 2017.
Since then the hybrid console has become one of Nintendo’s strongest-performing platforms, with lifetime hardware sales well above 100 million units.
The company’s February briefing also addressed shifts in near-term business expectations tied to domestic inflation and foreign exchange fluctuations.
Revised fiscal forecasts
In its briefing, Nintendo revised its annual software sales forecast from 210 million units to 205 million units and lowered its Switch hardware sales target for the next fiscal period from 19 million units to 18 million units.
Nintendo has attributed these revisions to inflationary pressure in Japan and volatile currency markets.
The company has previously stated it does not currently plan to raise prices on software or consoles, while leaving open the possibility of future price adjustments should market conditions change.
On employee compensation and broader economic pressure
Japanese Prime Minister Fumio Kishida had urged companies to raise wages to help workers manage inflation, and Nintendo’s announcement aligns with that national push.
At the earnings briefing, President Shuntaro Furukawa emphasized the strategic nature of the decision, saying in journalistic terms that securing and retaining a stable workforce is essential for the company’s long-term growth.
Digital sales and platform health
Nintendo also reported continued strength in digital game sales during the period, reflecting industry-wide shifts toward downloadable content and eShop transactions.
While Nintendo remains cautious about short-term revenue and hardware forecasts, the company’s investment in employee compensation and digital offerings highlights an effort to balance immediate economic headwinds with longer-term business stability.
This report summarizes verified, company-announced actions and figures disclosed during Nintendo’s February 2023 earnings briefing and related media coverage.