Nintendo will raise staff salaries by 10%, despite annual decline

Nintendo has announced a 10% raise in the base salaries for all staff working in Japan, according to a new report from Reuters. The move comes as a direct response to rising inflation in the country, and follows calls from Japanese prime minister Fumio Kishida to better protect staff in tough economic times.

Nintendo President Shuntaro Furukawa has now implemented this change, sharing the news in a recent earnings briefing, and describing it as a method to ensure ‘long-term growth’ and ‘secure [Nintendo’s] workforce’.

While many companies already account for inflation in employee salaries, Nintendo‘s decision is a notable one, given its recent financial results. According to its Q1-Q3 FY23 report, Nintendo‘s net sales, operating profit, and net profit have all experienced a significant downturn.

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Operating profit is down 13.1% in Q1-Q3 FY23, to 410.5 billion yen. Net sales are down 1.9%, to 1,295.1 billion yen. Net profit is down 5.8%, to 346.2 billion yen.

This decline has largely been attributed to fluctuations in the economy, as well as a significant decline in hardware sales, compared to the same period in FY22. As noted in the company’s recent financial report, hardware sales were down 21.3% in Q1-Q3, to 14.91 million units sold.

The base Nintendo Switch saw the most significant decline, with sales dropping 55.7%. More people are now purchasing the OLED model, however, and this saw a 92.5% increase in sales during the same period.

Nintendo noted that even with these fluctuations, the Nintendo Switch has now solidified its position as the company’s second most popular console of all time, behind the Nintendo DS. It has now sold 122.55 million units in its lifetime.

Despite external challenges, Nintendo also reported strong sales for its recent game releases.

Pokemon Scarlet and Pokemon Violet have now hit a combined 20.61 million units sold. Splatoon 3 sold 10.13 million units in Q1-Q3 FY23, and Nintendo Switch Sports hit 8.61 million units sold in this period.

While current circumstances have dampened the success of these releases, it’s clear Nintendo has faith the company will bounce back, and weather ongoing economic storms. The company will continue to push forward with new releases, including blockbusters like The Legend of Zelda: Tears of the Kingdom, and will actively support staff along this journey.