nintendo promises 10% pay raise even as it slashes profit outlook
Nintendo Co Ltd is a Japanese video game maker company. On this Tuesday the company said that They are planning to hike employees’ base salaries by 10%.
Even though the stronger yen forced it to lower its full-year profit forecast.
Fumio Kishida the Prime Minister of Japan deserve to be remembered for this price hike of labor charges in Japan. As inflation looms in an economy accustomed to years of deflation and stagnant wages, and as Japan begins its annual round of labor negotiations. Now they are ready for welcome spring.
There are many Retailing Company Limited but the Uniqlo clothing chain was the first who announced that they will increase salaries by up to 40% and shocked Japan Inc.
Nintendo President Shuntaro Furukawa said that “It is critical to our long-term growth to secure our workforce”.
There are companies who are capable to pay high to its employees. High wages also attract talents, and in Japan we know there is shortage of labor as there is falling birth rate.
The maker of “Super Mario Bros” and “Legend of Zelda” slashed its operating profit by 4% to 480 billion yen ($3.6 billion) for the year through March 31, much below the Refinitiv consensus forecast for a profit of 582 billion yen. is less.
Nintendo slashed its annual software sales forecast from 210 million to 205 million units, and slashed its Switch console sales target from 19 million to 18 million units.
Furukawa said the Kyoto-based company does not plan to raise the prices of software or game consoles, but they will definitely think about it according to the demand and trends of the market.
Though they denied again on the topic whether the company is considering a successor to the six-year-old Switch!
Nintendo with PlayStation maker Sony Group Corp and Xbox maker Microsoft Corp, sold 8.2 million Switch units in this quarter. But it is less than 23% when we compare with last year.