In an effort to stay competitive in an increasingly tight market , Nintendo Co. has decided to raise wages for its existing and new employees in Japan by 10% starting this year, joining other major companies that have implemented similar pay increases.
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In what is being described as the biggest increase in domestic wages in decades, central banks are finding it increasingly difficult to contain inflation. In December, Japanese workers saw their biggest pay rise since 1997, which is likely to fuel speculation about a possible move by the central bank towards tighter monetary policies once Governor Haruhiko Kuroda steps down in April. The gains suggest that Japan’s economy is expanding and strengthening at an impressive pace.
Despite lowering its full-year revenue and profit forecasts, Nintendo president Shuntaro Furukawa revealed that the company will raise wages to boost its "hiring power" in an effort to ease the burden on employees.
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As the new fiscal year approaches, investors are closely watching the Switch. Despite the tech industry's boom this year, Nintendo has yet to join in the celebration — and it's likely to remain stagnant until it unveils a successor to its iconic console. Unfortunately, sales have been declining for two years, making it more urgent to release a new version sooner rather than later. The company expects to close the year with 18 million consoles sold, significantly below its original goal of 19 million.
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Nintendo has been an integral part of gaming since its founding 130 years ago. From its beginnings as a card game manufacturer to its current position as one of the biggest players in gaming, it's truly remarkable how far this iconic company in such a short time! While there are many other great companies that produce amazing games, there's no doubt that without Nintendo we wouldn't be where we are today in terms of gaming technology or industry recognition.
