Nintendo announces salary increase for all employees in Japan

Recently, Nintendo announced its financial report for the third fiscal quarter of the fiscal year 2023 ending on December 31, 2022, showing a year-on-year decline in both turnover and operating profit in the first three fiscal quarters of this fiscal year. Due to the economic downturn, declining consumer demand, the strengthening of the yen, and other factors, Nintendo has also lowered its full-year performance expectations.

According to Reuters, despite the poor financial report and performance outlook, Nintendo still decided to raise salaries for all employees in Japan. From April this year, the basic salary of all Nintendo employees in Japan will be raised by 10%. In addition to regular employees, contract workers, and part-time employees will also have the same salary increase. In addition, the starting salary of newly recruited university graduates will rise from the current 233,000 yen to 256,000 yen.

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Nintendo President Shuntaro Furukawa said that as inflation intensifies, employees will feel more burdened in their daily lives, and it is necessary to raise salaries for employees. The protection of outstanding talents is very important for Nintendo’s long-term growth. At the same time, Shuntaro Furukawa confirmed that Nintendo does not intend to increase the price of hardware and software, and will only consider doing so when necessary.

This fiscal year will end on March 31, 2023. Nintendo has lowered its full-year operating profit forecast to 480 billion yen, a reduction of 4%, which is lower than the previous 500 billion yen. In addition, Nintendo lowered its annual sales target for Nintendo Switch from 19 million units to 18 million units and annual software sales from 210 million to 205 million.