On February 7, Nintendo said it plans to give its employees’ base pay a 10% increase, even with its reduced full-year profit forecast and a cut to its Nintendo Switch sales target from 19 million units to 18 million.
As reported by Reuters, this comes as inflation affects the Japanese economy, with Prime Minister Fumio Kishida calling for pay increases. As Nintendo follows the call, company President Shuntaro Furukawa said, “it’s important for our long-term growth to secure our workforce.”
This pay rise also comes as Nintendo reduces its profit forecast by 4% to 480 billion yen, as well as cutting its software sales target by five million units and Nintendo Switch console sales forecast by one million units.
With the Nintendo Direct February 2023 set to reveal the rest of Nintendo’s plans for the first half of this year, we have to wait and see what software the company has that may combat this. With Nintendo’s E3 2023 absence rumoured to be due to a light release schedule for the second half of the year, it’s hard to imagine what Nintendo could conjure up.