Nintendo to increase worker salaries by 10% despite reduced profit expectations

Nintendo has announced a 10% pay increase for workers.

Earlier today, Nintendo held its quarterly earnings report, as presented by president Shuntaro Furukawa. As reported by Reuters, the president announced a salary increase of 10% for worker's base salaries across the board, for Nintendo's Japanese staff.

Right now however, it's unclear if this pay increase applies to workers overseas. Nintendo has a vast number of staff in North America and Europe, for example, who may or may not be affected by the base salary increase announced by Furukawa.

This pay increase for Nintendo's workers could be related to Japan's economy and inflation. At the beginning of January 2023, Japan's prime minister Fumio Kishida called on companies to increase worker's salaries in an attempt to offset inflation, which is plaguing Japan's economy after years of stagnant wages (thanks Bloomberg).

If this is the case, and Nintendo's pay increase is in response to Kishida's comments, then it could be the case that Nintendo's overseas workers outside Japan might not receive the same pay increase.

This increase for worker's salaries actually comes as Nintendo announced a reduced profit forecast for the full year. According to Reuters, a weak Yen forced the company to reduce its full-year profit forecast, but that didn't stop Nintendo from increasing salaries by 10% across the board in Japan.

Aside from the earnings report, Nintendo also just announced a brand new Nintendo Direct presentation, its first of 2023, set to air tomorrow on February 8. With The Legend of Zelda: Tears of the Kingdom set to launch on May 12, all eyes are on the eagerly-anticipated Breath of the Wild sequel to make a grand appearance.

Check out our upcoming Switch games guide for a look at everything else Nintendo has on its slate for the coming months.