Nintendo To Hike Salaries By 10%, Lowers Outlook For Sales Of Consoles

  • Nintendo Co, Ltd NTDOY NTDOF looked to boost salaries by 10% for current and incoming employees in Japan starting in 2023, as rivals hiked wages in an increasingly tight labor market.
  • Nintendo President Shuntaro Furukawa disclosed the raise even after slashing its full-year forecasts for revenue and earnings, saying the burden on employees is increasing and the move will help strengthen the company’s “hiring power,” Bloomberg reports.
  • Japanese workers’ nominal wages rose to a record in December, fueling speculation of the central bank tightening its monetary policy after Governor Haruhiko Kuroda stepped down in April. 
  • Nintendo may remain stuck in the doldrums pending a successor to the iconic gaming console, the sales of which declined over the past two years. 
  • Nintendo expects to end the year with about 18 million consoles sold, down from an earlier 19 million target.
  • Nintendo plans to boost production of its six-year-old Switch console in the coming fiscal year after shipping roughly 21 million Switch consoles in the year ending March.
  • With a $199.99 starting price, the console struggled more due to supply issues than any demand slump.
  • Price Action: NTDOY shares closed at $10.58 on Monday.
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